Digital lifestyle brand Made.com has announced its intention to undertake an IPO and float shares on the London Stock Exchange.
Founded in 2010 in the UK, Made's vertically integrated model, ever-changing product line and robust ecommerce platform have helped it become one of the world's premier brands for designer furniture and homewares. Made has consistently shown strong topline growth, with a gross sales compound annual growth rate (CAGR) of 36% over the last five years. Made's gross sales, net revenue and adjusted EBITDA (non-IFRS) were £109.5m, £82.4m and £1.8m, respectively, for the three months ended 31st March 2021, and £315m, £247m and -£5.1m for the year ended 31st December 2020.
Made states that "the furniture and homeware market stands at an inflection point of ecommerce adoption, with significant further upside potential given the secular shift to online. The market is further bolstered by a number of consumer trends reshaping the space – shifting demographics, increased focus on product sustainability, rise in remote working, and growing brand awareness driven by high social media engagement, among others".
CEO Philippe Chainieux comments: “Made.com has been revolutionising the home and living sector for the last 11 years. Founded in the UK, it is now the leading digitally native lifestyle brand in a sector that is shifting steadily online. The business is powered by a technology platform that connects independent designers and makers, allowing us to develop our exclusive product offering.
"The business is fast growing, and we have demonstrated the capacity of our brand and customer proposition to travel well. Around half of our sales are outside of the UK, and we are aiming to be the leading home destination in Europe for the digital native.”
Should Made proceed with the IPO, it would seek to raise approximately £100m of primary proceeds through the offer of new shares.
Made says it aims to scale in existing markets through continued investments in operational capabilities and brand awareness, growing its curated homewares platform and expanding internationally – Made plans to expand its homewares platform beyond Europe by 2023. In the three months ended 31st March 2021, approximately 48% of gross sales were generated from customers in Continental Europe, and 52% from the UK. During the same period, in the UK, Made's most mature market, repeat orders constituted approximately 50% of its business.
Commentator James Andrews, personal finance expert at money.co.uk, notes: “News of an initial public offering from Made.com comes at perhaps the perfect time for the ‘fast-furniture’ business. One of the winners of the pandemic, Made.com has seen revenues surge in the past year as people forced to spend more time at home during the UK’s various lockdowns have taken the opportunity to spend money that might otherwise have gone on nights out and foreign holidays on improving their living spaces.
“Last year, Made.com’s revenue was up a staggering £110m, a +63% increase YoY, and the firm is keen to use cash from a floatation to double down on this growth spurt.
“Chief executive Phillippe Chainieux said the IPO was part of a strategy to invest in additional marketing and improve its offering within Europe, especially in terms of customer service and expansion of its decoration and homeware ranges. With Made.com expected to be valued at as much as £1b when pricing is unveiled, it’s clear that the company has a strong outlook and hopes to use its pandemic performance to bolster future success.”