Back to search

Unlocking the Closet: Venture Capital and the Global Expansion of a Middle East Luxury Goods Marketplace

By Vikas A. Aggarwal,  Katia Kachan
Published 31 May 2019
Reference 6505
Topic Entrepreneurship
Industry Venture Capital,  Luxury Goods and Jewelry,  E-Commerce
Region Middle-East
Length 18 page(s)
Inspection copy
6.00
Add to cart
Summary

In 2018, the Luxury Closest (TLC), an e-commerce marketplace for pre-owned luxury goods based in Dubai, receives Series C investment from two venture capital firms, Middle East Venture Partners and Wamda Capital. CEO Kunal Kapoor needs to evaluate three distinct paths for the company’s expansion over the coming 18 months. The case follows the development of TLC since its founding in 2012, the role of venture capitalists in its growth, and the choices facing the company as it considers how to deploy the funding to expand globally.

Teaching objectives

Understand (a) the differing perspectives of entrepreneurs and venture capitalists in an early-stage VC investment; (b) how entrepreneurs and venture capitalists co-create an e-commerce start-up venture; and (c) the differences between venture capital in an emerging market like the Middle East and established locations such as Silicon Valley.

Keywords
  • Entrepreneurship
  • Venture capital
  • Private equity
  • Luxury goods
  • E-commerce
  • Digital disruption
  • Middle East
  • Start-up
  • Scaling
  • Marketplace
  • Global expansion
  • Q31819
About the authors
Aggarwal

Vikas A. Aggarwal

Associate Professor of Entrepreneurship and Family Enterprise

Katia Kachan

INSEAD MBA' 16D

Recommended Cases

Citron: Global Expansion of a Consumer Goods Start-up from the Middle East

By  Vikas A. Aggarwal,  Katia Kachan
Add to cart
In January 2022, Sara Chemmaa, founder and CEO of Citron, a Dubai-based start-up that made distinctive lunchboxes and other carry containers, is reviewing her pitch deck for a Series A investment round. Will her growth story appeal to institutional investors? Will the expansion strategy for her consumer goods company convince funds with an investment remit in tech-based ventures?
    View case

    Chalhoub Group: A Luxury Success Story in the Middle East

    By  Frederic Godart,  Andrew Shipilov,  Brian Henry,  Nancy Leung
    Add to cart extra
    This case illustrates the key role played by a local distributor in the luxury goods industry in the Middle East. By partnering with the Chalhoub Group, western firms have built a competitive advantage across the six countries of the Gulf Cooperation Council (GCC).
      View case

      Adara Venture Partners: Building a Venture Capital Firm

      By  Anne-Marie Carrick,  Vikas A. Aggarwal
      Add to cart
      This case examines a critical decision faced by the partners of a venture capital firm, Adara Venture Partners, in June 2013. In the course of raising their second fund, the partners face the prospect of an anchor investor pulling out because Adara had not yet assembled sufficient capital to meet the end-of-month deadline to complete the fund’s first closing.
        View case