VirtualStock Holdings Limited

VirtualStock is a disruptive software company, with a game changing approach that challenges the costly and time-consuming process of traditional systems integration. Utilising agile, open source technology, VirtualStock has developed a unique way for information to flow between any set of fragmented systems, without disruption to any existing IT landscape. Data is seamlessly collated, enriched, mapped and validated, allowing only trusted, reliable information to be deployed. Virtualstcok’s solutions are a rapid, flexible and scalable alternative to traditional systems integrations. The “integration” market is worth c.US$300-500 billion per year.

Legendary invested in VirtualStock in October 2012, at a valuation of £2m, and has since that time been assisting it in building its business.

Virtual Stock’s flagship product, The Edge, aims to transform global enterprise supply chains and marketplaces. The Edge delivers best-in-class eProcurement functionality, including an Amazon-style B2B marketplace, full procure-to-pay (P2P), product information management (PIM), catalogue management, order management, inventory management, e-invoicing, track and trace, and analytics. The Edge has been successful in delivering supply chain optimisation for leading retailers, the NHS, and, ultimately, their customers.

In June 2013, subsequent to Legendary’s ivestment, VirtualStock signed a landmark contract with Tesco, one of the world’s largest retailers. The contract was for a SaaS solution that enables Tesco to increase significantly its online presence by expanding its non-stocked product range supplied by hundreds of its drop-ship suppliers.

In April 2014, VirtualStock raised growth funding at a valuation of £25m or in excess of 10x the valuation of £2m at which Legendary invested in VirtualStock some 18 months earlier.

In July 2015, VirtualStock contracted with a leading NHS Teaching Hospital Trust, Guy’s and St Thomas’ Trust,   to deliver cost saving efficiencies within the Trust’s supply chain. This first step and entry into the NHS, underlined VirtualStock’s cross sector capability. It demonstrated the ability of VirtualStock solutions to connect any set of fragmented systems, without disruption to any existing IT landscape.

Also in July 2015, VirtualStock announced that it had entered into a contract with Maplin Electronics Limited. Maplin Electronics is the UK’s leading electronics specialist with its website offering more than 30,000 products and it having 200 stores in the UK and Ireland.

VirtualStock also entered into a contract with Argos Limited. Argos is the UK’s leading digital retailer, offering more than 33,000 products through, its growing mobile channels, stores, over the telephone and uniquely, through Argos TV.

In October 2015, Nick Jenkins, founder of and angel investor,  purchased a small stake in VS at a valuation of £58m, more than double the valuation achieved in the April 2014 growth funding round and 29x the valuation at which Legendary initially invested.

In February 2016, VirtualStock was cited as exemplary of best practice in employing digital technology to deliver significant cost reductions with Guy’s and St Thomas Trust in the landmark Lord Carter report, “Operational productivity and performance in English NHS acute hospitals: Unwarranted variations”.

In May 2016, Beaufort published a research report valuing Virtualstock at £176m – Beaufort Research May 2016

In October 2016, Virtual Stock’s The Edge was adopted as the common catalogue management solution by the Shelford Group to deploy Virtual Stock’s cloud-based module catalogue management solution, part of The Edge, providing a solution to what Lord Carter described as one of the major issues affecting the NHS.

The trusts that make up the Shelford Group are of strategic significance to NHS care, the life sciences industries and the wider UK economy. They comprise the 10 leading NHS multi-specialty academic healthcare organisations, employ over 100,000 people and have turnover of over £10 billion, making up over 13% of acute trusts’ turnover across England. The Shelford Group was formed in 2011 to share best practice in key service areas across its membership and to engage with Government, Parliament and industry to represent large tertiary centres and the wider NHS.

This success was followed by the announcement on 2 November 2016 that VirtualStock’s The Edge was to be utilised by NHS SBS, a joint venture between the NHS and Sopra Steria Group S.A., a European leader in digital transformation. The Edge enables hospitals to purchase a full range of products through a single eCommerce platform, in a way that users experience in everyday online shopping. The Shelford Group has signed up to use the technology, and the NHS SBS partnership is expanding the potential for savings to many more trusts.

NHS SBS has already saved the NHS hundreds of millions of pounds since it was set up in 2005. By utilising VirtualStock technology, it aims to help the health service work towards achieving the £500 million to £1 billion of procurement savings called for in Lord Carter’s 2016 productivity review. In essence, VirtualStock technology is providing an “Amazon” like marketplace for the NHS by partnering with NHS SBS.

VirtualStock also continued to build its presence in the retail sector. In March 2017, it was announced that VirtualStock had been appointed by the John Lewis Partnership, including 48 John Lewis shops across the UK, and 349 Waitrose shops, to implement its Supply Chain Management System, The Edge.

Following this win, Beaufort updated their valuation to £237m – Beaufort Research March 2017

In July 2017, Notion Capital, a leading European B2B SaaS Venture Capital firm, invested in VirtualStock, to support its next phase of growth. The round valued VirtualStock at £66m, or over 30x the initial valuation at which Legendary invested in 2012.

Virtual Stock is now established as a provider of digital solutions to the UK’s leading retailers. Its retail clients include Tesco, Maplin, Sainsbury’s Argos, Dixons Carphone and Office Depot. It is also established as a provider to the NHS, and in January 2018, partnered with the UK’s leading logistics company Wincanton plc.

Since Legendary’s investment into VirtualStock, Legendary has assisted VirtualStock to have its solution become adopted by some of the largest private and public sector organisations. VirtualStock is well on its way to becoming an industry standard inventory, supply and logistics value chain and data management utility. Legendary continues to proactively assist VirtualStock.

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