3i in spending spree at retail site

The south-east UK office of 3i has invested in 21store.com for the second time and introduced Elderstreet, the specialist software and Internet venture capitalist, as a syndicate partner.

21store is one of the world’s first global Internet retail companies and delivers electronics products to customers globally. Funding will be used to further improve the website, develop key areas and strengthen management.

Founded in 1995 as a home-based operation selling high value electronic goods via the Internet, 21store now supplies thousands of individuals and over 250 blue-chip companies, with products ranging from Psion organisers to Casio sports watches. The company operates within a European e-commerce market estimated to be worth around $76 billion by 2001. 21store’s sales have trebled in the last 18 months.

Of key importance in the e-commerce industry is the number of visits to the company’s website. In order to build awareness of the business, 21store has established strategic partnerships with over 30 sites including Virgin, Yellow Pages, Scoot and Excite.

The management team is led by Michael King, managing director, who brings to 21store extensive marketing experience having previously worked for ICL and Reuters. 3i introduced Geoff Brady, formerly with Superdrug, Kingfisher and Sainsbury, as non-executive chairman.