Luxembourgish Rahco Capital takes a stake in Spanish shoe brand Hoff

Luxembourg investment company Rahco Capital has taken a minority stake in the Spanish shoe brand Hoff, according to a press release. It is not known what amount the minority interest cost.

The company will continue to operate under the leadership of co-founder Fran Marchena. In addition to his role as CEO, Marchena will remain as majority shareholder of the fashion and footwear brand, owning more than 85 percent of the shares following the sale to Rahco. Hoff said the investment company’s investment will enable the company to further boost its growth and expansion. The aim is to position Hoff as a global reference in the fashion, footwear and lifestyle sectors, with sneakers as its flagship and main product category.

“The addition of Rahco is a strategic step for our company, aimed at strengthening its professionalization and leveraging its expertise in other key sectors,” said Fran Marchena, founder, CEO and majority shareholder of Hoff, in a statement. He added Rahco’s minority stake will “enable us to enrich our operations and processes with new perspectives, in line with our commitment to providing maximum value to our customers.” It will also enable Hoff to “continue our strong growth trend.” “, thanks to the capital injection from the investment fund.

“We are excited to be part of Hoff’s growth” and to “guide Fran and his team in this new phase of expansion,” said Manel Cerqueda, partner at Rahco Capital. “Hoff’s innovative vision and their solid business model fit perfectly with the type of company Rahco is looking for.” Cerqueda is convinced that “this collaboration” with the fashion brand “will not only help Hoff strengthen its market position, but also become a global reference”, in line with its strategic objectives.

From digital pure player start-up to Mark Zuckerberg

Hoff was founded in Spain in 2017 as a digital pure player by Fran Marchena and Miguel Botella. In January 2022, Botella sold his shares to Marchena. Marchena thus became the majority shareholder and took over full control of the brand. Since then, he has managed to further stimulate Hoff both nationally and internationally by focusing on the two most important pillars that have fueled the growing interest in Hoff: the commercial offering and the strategy.

Since its founding, Hoff has specialized in designing, producing and selling urban sneakers, designs that have even been worn by Mark Zuckerberg. Hoff’s shoe range has been continuously expanded with new and increasingly attractive designs. In recent months, the brand has rapidly diversified its product catalog with new lines of boots and sandals, as well as bags, backpacks and clothing. With these items, Hoff has developed into a complete lifestyle brand, while simultaneously scaling its business operations through both wholesale partners and the development of its own retail network.

With regard to the determined expansion that Hoff is pursuing in physical retail, to which the new investment from Rahco Capital will undoubtedly contribute, Hoff made the transition from digital pure player and multi-brand channel to the retail sector at the end of 2020 with the opening of its first flagship store . This store opened its doors at number 39 of Calle de Velázquez in Madrid, in the heart of the Salamanca district.

Since then, more than 20 of its own stores have been added, including the first international stores in cities such as London, Paris, Antwerp and Lisbon. This retail network, combined with its strong wholesale operations, has increased the company’s turnover to more than €60 million in the past 12 months. From its new 1,000 square meter headquarters, which opened in mid-September, and with the help of new financing from Rahco Capital, Hoff will continue to work on further scaling its sales, retail network and product offering.

Founded in 2022, Rahco Capital has a minority stake in motorcycle helmet manufacturer Mat Group and is led by Manel Cerqueda and Carlos Ramón, both based in Andorra and with a background in investment banking in countries such as Switzerland, Luxembourg and Andorra. They lead the venture capital fund that specializes in investments in small and medium-sized companies, through buyout or growth investments, as is now the case with Hoff.