Earlier this year it looked like online furniture seller Made.com was heading for a float, but it seems that plan has been put on the back-burner for now. The company, whose chairman is Lastminute.com co-founder Brent Hoberman, has landed $60m (£39m) in equity funding, which it plans to use to strengthen its presence in Europe.
The cash comes from US investors Partech Growth Fund and Europe’s Fidelity Growth Partners, as well as previous backer Level Equity. Although some of the money will be going to other prior investors who were keen to exit, Hoberman told the FT Made would make ‘10s of millions of pounds’ from the deal. Susanne Given, former COO of Supergroup, will also join the company’s board.
‘In just five years MADE has built a powerful brand and an excellent customer proposition, which is changing the way we shop for furniture,’ said CEO and co-founder Ning Li. ‘With the support of Partech Growth, we now have the funding and board expertise to fully execute on the next stage of our ambitious international growth plans and to further progress towards our aim of becoming Europe’s number one destination for home design.’
Founded just five years ago, Made is loss-making but recorded revenues of £26m in 2013 and claims to have been growing 100% annually for the last three years. It plans to use the new cash to grow in its existing markets of the UK, the Netherlands, France, Italy, Germany and Belgium, rather than targeting the US or emerging markets.
That probably makes sense. Retailers have a habit of coming-a-cropper when they cross the Atlantic (in either direction). Besides, Made says its current markets are worth as much as £100bn alone, so it has got plenty of work to be getting on with.