Made.com acquires marketplace Trouva
Online furniture retailer from the UK, Made.com, has announced an acquisition of Trouva. This lifestyle marketplace sells products from over 700 independent boutiques and brands. Through the acquisition, Made.com wants to grow its marketplace business.
Made.com is an online retailer that sells furniture ordered directly from designers. After its launch in 2010 in the UK, the company has been expanding across Europe. For 2021, the company reported a loss before tax of 37.8 million euros. The company said that the loss was caused by supply chain disruptions and IPO related charges.
700 partner sellers
The retailer expects a positive adjusted EBITDA this year and is investing in its growth. In order to do so, it has acquired Trouva. On this lifestyle marketplace, customers can order products in homeware, lifestyle and fashion from independent boutiques and brands. The marketplace has over 700 partner sellers and delivers to 34 countries worldwide.
‘The acquisition allows Made.com to accelerate its growth strategy.’
“This acquisition will allow us to significantly accelerate our growth strategy by expanding our curated product range – giving our customers more choice and newness – and scaling the business in key territories both established and targeted by leveraging Trouva’s exceptional cross-border technology”, said Nicola Thompson, Chief Executive Officer of Made.com.
Effects of acquisition
Made.com is able to expand its product range and scale its marketplace business. It will also leverage Trouva’s cross-border functionality to increase its distribution coverage, with dropship functionalities, carrier integration and inventory management.
‘The company’s anticipated capex spend will be lowered with around 2.3 million euros.’
The acquisition will also lower the company’s anticipated capex spend to between 15.2 million euros and 21 million euros (compared to a previously estimated 17.5 million euros to 23.4 million euros). The companies have not disclosed the amount involved in the acquisition, though it is reportedly fully funded by cash.
Trouva continues as standalone brand
While it is now part of the Made.com Group, Trouva will continue to operate as a standalone brand. “The combination of the two businesses enables us to leverage synergies across our brands, customers and our technology platform. By becoming part of the MADE group, we will continue our mission to support independent boutiques and brands by making their curation accessible”, said Alex Loizou, CEO of Trouva.