In the same eventful afternoon that saw Ideedock acquired by e-office (more on that tomorrow) and Voradius raise its first funding round, online furniture retailer Flinders announced it received growth funding from Peak Capital.
Online furniture sales are one of the fastest growing industries online (source: Thuiswinkel.org). This, combined with the imminent further changes that will impact the sector, is one of the reasons of Peak Capital’s interest in the startup. Fund manager Thijs Gitmans: “Internet plays an increasingly important role in furniture sales, both in the orientation as well as in the purchase phase. Traditional retailers have a hard time adapting to the new reality, which offers opportunities to innovative players like Flinders, which internet embedded within their genes.”
Home and living is a traditional sector, with a high degree of fragmentation among suppliers, offering room for a disruptive player according to founder Smits. “We can use the growth capital to add new brands and products to our offering. Balancing the right level of stock, as well as stock management with suppliers, will remain one of the key challenges going forward. We’ll also invest in a more inspirational presentation of our online offering.”
Finally, the company intends to use the growth funding, to expand to Belgium, in a two-step approach. It will initially focus on an online store, but follow up with an offline cafe location and design store in Antwerp.
Both the size and valuation of the investment were not disclosed, but after the transaction Peak will hold a 20% interest in the company. Peak typically invests between EUR200k and EUR800k in their portfolio companies.