Specialist eCommerce platform Online Poundshop has secured investment from venture capital firm Midven, allowing the company to upgrade current warehouse systems, and create a range of new positions across the business – including marketing and distribution roles.

The investment will enable the eCommerce brand to upgrade its warehouse systems, and create new marketing and distribution roles.

The undisclosed sum has come from the £35m West Midlands equity portion of the Midlands Engine Investment Fund (MEIF).

Based in Wednesbury and founded in 2014, Online Poundshop has seen rapid growth since its inception largely due to a previous investment from Foresight VCT plc and entrepreneurial expertise from founder by Steven Smith, the founder of Poundland retail stores, and is led by Chris Maddox, former CEO of The Works and CEO of Poundland.

“We are delighted as a team to have received the additional backing from Midven,” said Maddox.

“Their substantial investment will support the continued development of our systems including new warehouse and operational systems as well as the creation of a brand-new marketing function, underpinning the increasing demands we are already experiencing, but more importantly, providing for a solid operational platform to support our significant future growth plans.

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Roger Wood, Director at Midven, added: “Online Poundshop has grown rapidly over the last three years, demonstrating 50 per cent year on year growth.

The company is run by an extremely talented management team, all with exceptional track records within the sector. These two things combined made for a compelling case for MEIF to provide funding, to support investment into key systems that will enable the business to scale its eCommerce platform to the next level”.

The MEIF project is supported financially by the European Union using funding from the European Regional Development Fund (ERDF) as part of the European Structural and Investment Funds Growth Programme 2014-2020 and the European Investment Bank.