Virtualstock has appointed René Schuster as chairman with immediate effect as it also announces a fundraising round of £3.42m from the Enterprise Investment Scheme (EIS).

The digital supply chain solution company welcomes Schuster to its ranks, following his strong track record in growing global telecommunications and technology businesses.

He is most renowned for his achievements as CEO of Telefonica Deutschland, in which he led the company through the largest IPO in Europe and most successful DAX IPO in 2012, raising €1.6 billion for Telefonica Group.

He grew it into one of the largest telecommunications operators in Europe and established 02 as the number one consumer brand in Germany.

He has also held a number of other senior leadership positions in the telecommunications and technology and has extensive private equity experience.

The company’s recent fundraising round was oversubscribed by 71 per cent, taking the total primary capital invested into the business to £7 million.

Virtualstock was previously valued at £66 million, following a fundraising round led by Notion Capital in July 2017.

The post-money valuation of the business after the recent EIS fundraising round is approximately £69.5m.

The funds will be used to scale the business and to prepare for international expansion as it continues to have good momentum with revenue growth increasing from 63 per cent to 74 per cent over that last two years. The company’s headcount has also increased from 20 to 116.

“I am delighted to be joining the Board of Virtualstock,” said Schuster.

“I have been impressed by the strength of the management team, the client base and particularly its unique proposition, built from an expert understanding of the specific needs of the retail and healthcare sectors, which is helping leading UK retailers and the NHS keep pace with rapid structural changes.

“With its blue-chip client base and compelling solution, I am excited by the opportunities presented to the Group to roll out and scale its offering across other verticals and particularly across new international markets.

“I look forward to drawing upon my experience and global network to take the company into its next chapter of growth.”

Virtualstock CEO Andrew Mills commented: “I am delighted to welcome René to our Board as chairman.

“He brings a vast network and wealth of expertise in leading multinational companies and advising high growth companies on scaling up and raising capital in the telecommunications and technology sectors across Europe and America.

“He will be hugely valuable to Virtualstock as we embark upon our next phase of growth and prepare for international expansion.

“I am also extremely pleased that we have completed our latest round of fundraising and by the strong levels of interest and support we received from new investors. The new funding will help facilitate our ambitious growth plans.”