Made today said it would expect to raise about £100m to expand beyond its existing International markets if it goes ahead with a potential stockmarket flotation. At the same time it plans to invest in shorter lead times for deliveries while boosting awareness of its brand.
Currently, Made – which describes itself as the only pureplay digital native furniture and homewares brand operating at scale – makes 52% of its sales in the UK, and 48% in seven markets in continental Europe, led by France and Germany. In 2020 it reported losses before tax, interest and one-off costs (adjusted EBITDA) of £5.1m on gross sales of £315m.
In the three months to March 2021, it made adjusted EBITDA of £1.8m on gross sales of £109.5m. Its ambition is to reach £1.2bn in turnover by the end of 2025. Half of sales in the UK came from repeat orders in the first quarter of this year.
Made now says it plans to follow the International journey taken by digitally native fashion businesses by starting to ship to new international markets. It will work with international shipping providers while using its existing European logistics infrastructure.
Made also aims to become the ‘go-to destination’ for design-led homewares, and says it will continue to invest in operations with the emphasis on reducing lead times for delivery to customers. As of 2020, it has 1.1m active customers and says its products resonate strongly with younger shoppers who prioritise design, sustainability and are used to buying via digital – and will soon reach the prime age for home shopping.
Philippe Chainieux, chief executive of Made, says: “Made.com has been revolutionising the home and living sector for the last eleven 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."
Made, founded in 2010 with an ambition to connect furniture designers directly with customers, is ranked Top350 in RXUK Top500 research and sells online and via seven showrooms, with flagship branches in London and Paris. It currently works with more than 150 designers, artists and collaborators produce designs, with an average of nine new collections launched each week.
Made has previously said that the Covid-19 pandemic brought homewares customers online in months – rather than the predicted four to five years, with Black Friday 2020 the busiest day in its history. Demand for home working furniture rose at the same time. In December it marked £1bn in sales since launch by giving its 650 staff a stake in the business, with share options to be shared equally - outside senior management - over the coming three years.