British startup Made.com says that “a new tier 1 global institutional investor” has made an important investment commitment in the furniture company. This mysterious investor is willing to lead a new $56 million round (£40 million) with existing investors Partech Ventures, Level Equity and Eight Roads Ventures also participating.
It sounds like the funding round isn’t finished just yet, so Made.com could end up raising more than that.
More interestingly, the company has shared some details about its balance sheet. In 2017, the company has been profitable in the U.K., France, Belgium, the Netherlands and Luxembourg. And if you take into account the entire company in all countries where it operates, Made.com is currently cashflow positive.
In 2017, the company has generated a net revenue of $178 million (£127 million), which represents a 40 percent increase compared to 2016. So it sounds like Made.com is on the right path to profitability.
And that’s why the company also announced that Adrian Evans is joining the company as CFO. He previously worked at Yoox Net-A-Porter. This release sounds like Made.com is now optimizing the company for a potential IPO.
The company sells quality furniture at an affordable price. Made.com wants to disrupt high-end furniture stores by controlling everything from manufacturing to the e-commerce platform. This way, the company doesn’t have to pay as many middle players and can offer cheaper prices.
As e-commerce is also becoming the norm, it fosters competition with furniture giants, such as IKEA. Going to Made.com’s website is as easy as going to IKEA’s website after all.