Amsterdam-based e-commerce scaleup Dwarfs announces 3 new acquisitions; triples revenue to €36M



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Amsterdam-based e-commerce scaleup Dwarfs announced the acquisition of three new brands – Gadgy, Vita5, and Snoozle, and estimates that the new brands will add €24M in total annual revenue to the company. 

As per the company’s claims, these acquisitions will improve the profile of the company. Here’s the brief about the three companies:

  • Gadgy is a distributor of home and living innovative products with €17M in revenue.
  • Vita5 is a hammocks and cushions developer with €6M in revenue.
  • Snoozle is a designer and manufacturer of pet beds with €1M in revenue

Kenny Vaes, Chief Acquisition Officer at Dwarfs, says, “We’ve noticed that the acquisition candidates make their choice not only based on the purchase price, but also on the upside we offer as a team – that is, the prospective growth of revenue and profits. Dwarfs is home to some of the best e-commerce experts in the industry. We fully integrate acquired companies into our portfolio of brands and ensure that each company grows to a new level of revenue. Too many company founders, that is a very attractive outlook, and why several have reinvested millions into Dwarfs, further underscoring their firm belief in our approach.”

The company aims to acquire 20 successful online marketplaces with revenues ranging from €0.5M to €10M this year alone to pursue exponential growth both at home and at the international level.

Buys and grows e-commerce brands

Founded by Demian Beenakker in 2021, Dwarfs is an e-commerce platform that buys and grows e-commerce brands on marketplaces. The company invests in online stores with revenues ranging from €0.5M to €10M. 

The company claims to be the first e-commerce scaleup in the Netherlands aiming to acquire and consolidate online stores with rapid growth on the partner platform (LVB – Logistics via and, in some cases, internationally through Amazon (FBA – Fulfillment by Amazon).

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The upscaling of production, purchasing, logistics, customer care, and marketing are often associated with cost increases, including the administrative burdens of international expansion and cross-border sales. 

Dwarfs help sellers make their online stores successful, among other things, by rapidly scaling up their business activities and multiplying their revenues in a short period of time.

Tripling company’s revenue

Having already acquired eight brands in only six months of operations, these acquisitions have instantly tripled the revenue of the company to a total of €36M, beating management projections by three times. 

The company is on course to exceed €50M in revenue by the end of 2021 and €150M by the end of 2022 through organic growth with further acquisitions. 

Series B round incoming

The company’s board also announced the start of its Series B financing round, which will complement the recent €30M of debt financing. As a part of the Series B round, the management team aims to raise approximately €150 to €175M in new debt and equity from British and American investors and lenders.

With the new capital and debt financing raised from Series B, the e-commerce scaleup will continue to fund a number of major new acquisitions already in its pipeline. 

The company’s management team believes the additional capital also brings the prospect of international expansion within reach.

“We have started our preparations for our international expansion,” explained Dwarfs CEO Demian Beenakker. “Among other necessary steps, we have formed expert teams who will be able to fully capitalize on the dominant local marketplaces in Belgium, France, Spain, Portugal, and Poland, for example. Alongside Amazon, those local marketplaces will give a further revenue boost to the companies we have already acquired and we may look to acquire in the future. Our local presence will also put us on the map with foreign e-commerce companies that may be potential candidates for future acquisitions.”

The Dwarfs management team consists of Demian Beenakker, founder and CEO, Bar Urlings, founder and Chief Marketing Officer, Marco Coninx, Chief Growth Officer, Didos van Dam, Chief Financial Officer, Michiel van der Meer, Chief Operating Officer, and Tim Stribos, Chief Technology Officer.


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The editorial team of Silicon Canals brings you technology news from the European startup ecosystem. 

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