Ruslan Kogan was told that no-one would buy TVs online when he started his on online retail business 10 years ago.
“When I got the idea to create an online business model that sold private label LCD TVs directly to consumers, not everybody was as enthusiastic about it as I was,” he says.
The then 23-year-old was told that online retail was just for books and CDs and nobody would buy a TV without seeing it in person.
But he went ahead with two private label LCD televisions. Now there are about 28,000 products for sale at Kogan.com.
“I realised that in order to get the business off the ground quickly, it would need to be self‑funding and grow organically,” he says.
“Since then, Kogan.com has grown to become Australia’s largest pure‑play online retail website.”
Kogan.com today launched its IPO, offering shares at $1.80 each to raise $50 million to be used to expand the business.
The company will have a market capitalisation of $168 million when its lists on the ASX.
Until now, the business hasn’t taken any equity investment.
“By focusing on our customers and funding our growth from cash flow, we have been EBITDA positive since inception,” Kogan says.
“I believe that Kogan.com has become a challenger brand that stands for price leadership through digital efficiency.”