The London IPO boom continues as furniture store Made.com appears to be the latest to announce plans to go public, with the aim of raising £ 100million ($ 141million). It is expected to be valued at around £ 1 billion.
Made believes its e-commerce platform can benefit from the shift to online shopping and that more and more consumers are looking to beautify their living spaces, working more from home.
It wants to use these funds to develop its growth in existing markets, improve its customer service, expand its range of household items and give the group greater flexibility in terms of working capital.
“The company is growing rapidly and we have demonstrated the ability of our brand and our customer proposition to travel well,” said Philippe Chainieux, CEO.
“About half of our sales are outside the UK and we aim to be the number one home destination in Europe for the digital native,” he added.
The high-end furniture store was co-founded by top tech entrepreneur Brent Hoberman, who also co-founded Lastminute.com.
Releasing financial data for the first time, Made said gross sales for the year ended December 31, 2020 were £ 315million, while net income was £ 247million.
Made sells its products in the UK, Germany, Switzerland, Austria, France, Belgium, Spain and the Netherlands through its online platform.
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In the three months ended March 31, around 48% of gross sales were generated by customers in Europe and the remainder in the UK.
He said he launches nine new collections on average every week, partnering with more than 150 established and emerging designers and artists.
It estimates that it has a “large, active and loyal customer base,” with around 1.2 million active customers.
The company’s business model is centered on a ‘flexible and lean supply chain’, vertically integrated across all functions and processes, spanning the entire product lifecycle, from product development and sourcing to product delivery. shipping, storage and home delivery.
He said the global online and offline furniture and home goods market is currently estimated at £ 504 billion, of which £ 151 billion is attributable to Europe.
“The Home Goods and Furnishings category is well positioned for growth given increasing penetration rates and the expected strong growth, making it one of the most attractive sectors with significant potential in retail space, ”Made said.
He added that he was “well positioned to take advantage of favorable structural winds in the online furniture and home market, including industry consolidation, a growing focus on sustainability, work from home and millennials who enter their home training years. ”
Made is the last big name to go public this year. Notable floats in recent months include Dr Martens (DOCS.L), Moonpig (MOON.L), the Trustpilot review website (TRST.L) and Deliveroo (ROO.L).
“Timing is everything for an IPO and Made.com is going into the market with the aim of capitalizing on the accelerated shift to e-commerce and the strong home improvement demand seen during the pandemic,” Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, told Yahoo Finance.
“Ecommerce sites in particular are seizing the moment, with The Hut Group the first to come out of the traps in London with a highly successful IPO in August 2020. Moonpig’s positioning as an ecommerce platform rather than online card retailer helped its shares fly as soon as it launched in the market in early February. “
However, she pointed to recent data from the Bureau of National Statistics which shows that spending on “delayed goods like furniture has declined somewhat since the surge in spending in April.”
There are also a lot of rivals in the online furniture space, Dunelm and DFS should continue to be fierce competition, ”she said.
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