Dwarfs attracts 30 million euros, acquires 4 online shops

Dutch ecommerce acquisition company Dwarfs has attracted 30 million euros in debt financing from European investor North Wall Capital. Dwarfs has used the money to acquire four online shops that are active in the lifestyle and home furnishing industry.

When Dwarfs launched in May this year, it said it wanted to have acquired about twenty ecommerce companies by the end of 2021. Currently, it has acquired five companies, including the four just announced.

Dwarfs acquires four Dutch online shops.

With the 30 million euros acquisition credit facility secured from North Wall Capital, Dwarfs will complete the already signed agreements to acquire four online shops: Slaapkalm(weighted blankets; founded 2019, operating in the Netherlands), Calmzy (weighted blankets and bedroom accessories, founded 2019, operating in the Netherlands), Litollo (pregnancy pillows, founded 2019, operating in the Netherlands) and Kristie’s Kitchen(cutting boards and splatter screens; founded 2018, operating in the Netherlands, the UK, Germany and the US).

‘Young companies with a strong portfolio’

According to CEO Demian Beenakker, these are all relatively young companies with a strong portfolio of niche products. “Each of them has grown rapidly in its own way in less than three years and three of the four online stores still operate only in the Netherlands. Our know-how and clout will enable us to help them grow quickly on the international stage and allow the revenues to multiply, while the fourth already operates across multiple geographies.”

Dwarfs’ revenue soon to 35 million euros

In addition to the 30 million euros, Dwarfs is also looking to secure further additional equity capital from investors over the course of this month. “One of the aims of this funding round is to help fund a number of additional already-identified significant acquisitions that, if successfully completed, will triple Dwarfs’ revenue to around 35 million euros”, the company says in a press release.

Dwarfs will also raise a Series B funding round this year.

And if that’s not all, Dwarfs is also in the process of raising a larges Series B funding round, which will consist of both equity and debt, by the end of this year.

Revenue of 11 million euros

After the acquisition of the four aforementioned online shops and the acquisition of online kitchen store AMCO in May, Dwarfs now has an annual revenue of 11 million euros. The company has already revised its growth prospects upwards.

“There are many ecommerce companies in operation and we can make acquisitions faster than expected. At the same time, capital markets, especially in the UK and North America, are showing great interest in financing our activities and providing extra capital.”

Dwarfs has many competitors

Dwarfs is one of many Amazon seller acquisition companies in Europe, so there is some major competition going on. Berlin Brands Group, for example, managed to raise around 590 million euros yesterday, while British startup Olsam got 139 million euros in growth capital. And last Tuesday, UK company Heroes managed to raise 168 million euros. These are all millions of euros to buy and scale up successful sellers on online marketplaces in Europe.