Modanisa’s Buyout: Re-Pie’s Vision

credits: modanisa.com

Who is Modanisa?

What once was a dream of being able to offer stylish apparel around the world, for those who dress according to their beliefs, became reality on Mother’s Day in 2011, in Istanbul.

Its birthplace? Istanbul. Its customers? In 140 countries.

Every month, Modanisa’s platforms receive more than 20 million visitors, who shop from the 1000 brands available that offer 100,000 products in total. Those who shop from Modanisa are those who embrace modest dressing, which was the foundation of the brand. When they shop there they see someone who understands their needs, knows their preferences, and can give them what they want without having to compromise their beliefs.

Today Modanisa is the leading international online shopping site and e-export champion. This all came with dedication and hard work, while being able to highlight Turkiye’s strength in ready-to-wear clothing to the world. All this not only came with success but with reward;

2016 – named as the world most popular Islamic website by Reuters

2017 – received the “Islamic Economy Award”

2018 – won the “International Business Excellence” award

2021 – awarded the “Best Muslim Fashion Company” award by Center for Global Muslim Life, which is an organization voted on by participants from 90 countries.

Modanisa didn’t stop there; they also went on to host events. They started in 2016 by organizing Modest Fashion Weeks in Istanbul, in London and Dubai in 2017, sponsoring Jakarta Modest Fashion Week in Indonesia in 2018, and Finally in 2019 they brought Modest Fashion Weeks back to Istanbul where it was founded.

Early Institutional Backing:

Modanisa secured its first investment from Aslanoba Capital in 2013, followed by a second investment in 2016 from Saudi fund company STC Ventures and Dubai-based Wamda Ventures. Khaled Talhouni from Wamda Capital highlighted Turkey’s economic potential as a key factor in their investment decision and noted their collaboration with Goldman Sachs, one of Modanisa’s initial investors.

In January 2019, Modanisa announced it had sold a minority stake to Goldman Sachs and Wamda Capital; however, the founding partners retained the majority stake and management rights. Those funds were intended to be used to aid in the expansion of opening an office in London that year to oversee its North American and European operations.

Just 3 months later, Modanisa received an investment from the European Bank for Reconstruction and Development (EBRD).

There is a certain irony, however, in Goldman Sachs and EBRD investing, and later Goldman Sachs acquiring a minority stake in a company operating within an industry rooted in a religious framework that does not necessarily align with their own stated vision. Yet, from an investment perspective, the appeal is clear: the modest fashion industry is valued at over $300 billion, making it a significant and increasingly lucrative market. The investment therefore raises an interesting question—when financial opportunity intersects with an industry built around religious values, which ultimately takes precedence?

Its most important investors yet? Re-Pie Portfoy, Turkey’s first and leading alternative investment fund company. Who as of 2024, acquired 100% of Modanisa.

Credits: @modanisa

Who is Re-Pie Portfö?

Re-Pie Portföy was founded in 2015 by three partners Dr. M. Emre Çamlıbel, Mehmet Ali Ergin, and Caner Bingöl, who all have backgrounds in real estate. Preceding the publication of relevant Capital Markets Board (SPK) regulation, the three founding partners decided to expand into the investments sector becoming the first alternative investments fund management company established in Turkey.

With over 40 years of combined experience in real estate, it enabled them to support companies through investments to help them grow and guide them in the right direction. Alongside this, they thoroughly analyze companies, sectors, and real estate, offering investors alternative investment opportunities that create value.

To date they have invested in thousands of real estate properties and over 100 companies.

Re-Pie for a couple of years, has been diversifying its portfolio, extending out of real estate. In 2022, they started investing in retail, specifically Modanisa. In July 2022, they led Modanisa’s $20 million bridge funding round, which led to contributing $15 million via its Re-Pie Portföy Modanisa GSYF (Venture Capital Investment Fund) alongside Goldman Sachs and EBRD. In 2024, Re-Pie bought out the co-investors and the founders’ shares, vesting 100% of Modanisa. Investing an additional $12 million in capital to restructure its balance sheet and fund a pivot in retail strategy.

After acquiring Modanisa, the company extended physical stores to 11 from 6. They aim to open a total of 27 stores, targeting 200% growth.

What happened after acquiring the brand?

The investment improved automation in fulfillment and digital infrastructure but led to the closure of regional distribution points like the UK office, resulting in noticeable effects on shipping times. Thus, all orders are now processed and packed at the primary global warehouse in Istanbul, Turkey. However, the following offices handle local digital marketing, customer care, and regulatory compliance:

European Hub – Amsterdam, Netherlands: Serving as the legal and digital coordination common center for the European Union and the UK, under the management of the corporate entity MDN Europe B.V.
Middle East and African Hub – Dubai, United Arab Emirates: Directs all consumer operations and localized marketing for the Gulf and MENA Region, managed under Modanisa Mena DMCC.
Headquarters – Istanbul, Turkey: manages all international commerce, tech infrastructure, and oversees primary logistics

The collaboration of Re-Pie Portföy and Modanisa includes several motives:

Heavily Export-Driven Revenue Model

A major reason for Re-Pie’s pursuit of 100% ownership is Modanisa’s strong position in cross-border trade, with 80% to 85% of its revenue from international exports. Re-Pie utilizes Turkey’s efficient textile production to ship goods to over 140 countries, ensuring resilience against local economic fluctuations.

Targeting a Massive Global Market Niche

Re-Pie has organized its investment vehicles, such as the RE1 Modanisa Venture Capital Investment Fund, focusing on the modest fashion sector globally. Modanisa is highlighted as a leading player in the market valued at over $300 billion.

Open-Ended Retail Investor Access

Re-Pie differentiates itself from standard private equity by allowing external retail and qualified investors to participate in its Embedded Venture Capital Fund. This approach ensures a constant flow of fractional investment capital, enabling Modanisa to expand its physical stores while minimizing reliance on high-interest bank debt.

Cultural Positioning via “Modest Fashion Weeks”

Re-Pie supports Modanisa’s unique marketing strategy by sponsoring global Modest Fashion Week events, focusing on experiential and cultural marketing rather than just digital ads. These international runways in major cities help showcase Turkish designers to global buyers while enhancing brand equity.

Multi-Lingual Infrastructure

Re-Pie supports its 20 million monthly visitors by providing a localized user experience, maintaining its e-commerce infrastructure, mobile application, and customer support in six languages: Arabic, English, French, German, Turkish, and Indonesian Bahasa.

Integration into Re-Pie’s Giant Ecosystem

Modanisa leverages technological synergies from Re-Pie Portföy – who manage a multi-billion-lira portfolio of alternative assets – by integrating advanced FinTech solutions, including payment gateways and micro-credit lines, into its platform. It benefits from being part of the same group as logistics platforms like Getir and financial systems like Colendi, enabling instant regional shipping options.

But there is one thing I cannot stop thinking about. When institutional capital and private equity firms invest in lifestyle e-commerce, they often focus on metrics like gross merchandise value (GMV) and customer acquisition costs. However, in the modest fashion sector, there exists an overlooked factor: historical baggage tied to organizational roots. For example, Modanisa’s foundation is linked to global Modest Fashion Weeks, which promised democratization but were marred by partner disputes, unpaid claims, and legal controversies. For investors like Re-Pie Portföy, these issues represent significant governance risks rather than mere industry rumors. Reliable growth and consumer trust are critical for successful exits, yet unresolved legal issues and strained stakeholder relationships can create unpredictable turbulence. Thus, investors conducting thorough due diligence ask the same question I am asking: Can a brand scale globally when its ecosystem has a history of organizational instability?

From a grassroots vision in Istanbul to a heavily restructured asset under Re-Pie’s umbrella, Modanisa’s next era will be defined by execution. The friction of centralized logistics, the capital-intensive gamble of physical retail expansion, and the shadow of an eventual public offering present a steep climb. But as it continues to export Turkish textile excellence to over 140 countries, Modanisa remains the definitive case study of what happens when venture capital, institutional heavyweights, and global modest fashion collide.

Lahum