Marketing and e-commerce services provider The Native has paid CHF8.5m ($9.1m) for a 15% stake in US-based online auctioneer Paddle8, Fast Company has reported.
Paddle8 had raised $44m from Founder Collective, Mousse Partners, Skate Capital and various private investors when it merged with Germany-based Auctionata in mid-2016.
However, the merged company ended up filing for insolvency a few months later, after a withdrawal of expected financing left it unable to pay employees. Paddle8’s founders managed to break free and the company is set to relaunch in spring this year.
The Native has the option to increase its stake in Paddle8 to 51% by paying another CHF24.5m. Izabela Depczyk, founder of The Native, will join Paddle8’s board of directors while Paddle8 co-founders Alexander Gilkes and Osman Khan will take seats on The Native’s executive committee.
The relaunched Paddle8 will make greater use of cryptocurrencies such as Bitcoin and is preparing to host a money-themed auction, Bidcoin, which will be aimed at the crypto community. It will also expand from art and collectibles to other items.