IKEA-backed NORNORM secures backing from Santander CIB and EIF

Copenhagen-based NORNORM, a circular workplace furniture solutions provider, has secured a debt facility through a collaboration with Santander Corporate & Investment Banking (Santander CIB) and the European Investment Fund (EIF).

Funds to expand in Europe

The Nordic company benefits from support from the European Union under the InvestEU fund. Santander CIB spearheaded the debt financing round, while the EIF provided financial backing to support NORNORM’s growth.

This financing, alongside previous funding totalling €110M, empowers NORNORM to expand its market reach to the UK, France, and Germany, enhance its business model, and innovate in the office furniture landscape.

Ignacio Yllera, Executive Director of Growth Financing at Santander CIB, says, “We are delighted to provide NORNORM with this facility which will support their growth, expand their business and strengthen their leading position in circular workplace furniture solutions.”

Anders Jepsen, Founder and CEO at NORNORM, adds, “With this partnership, we are enabled to accelerate our mission, to offer circular workspaces that are better for people, businesses and the planet – thereby proving that circular business models can drive exponential growth and profit.”

A subscription-based furnishing service

NORNORM, a Nordic scale-up co-founded with IKEA in 2020, offers furniture-as-a-service through a fully circular subscription model, helping businesses cut CO2 emissions by up to 70 per cent compared to buying new furniture.

With over 350,000 square metres of workspace furnished and a 50 per cent annual growth in contracted square metres for 2023, NORNORM aims to tap into the €201B office furniture market, leveraging its approach and commitment to circular economy principles.

Built on circularity, each piece of furniture is kept in a loop, maintained, and refurbished to extend its lifespan, benefiting businesses, people, and the planet. 

Backed by Inter IKEA, Verdane, Philian AB, and Coen van Oostrom, NORNORM aims to redefine the future of work with a fully circular business model for workspace furniture.

The company’s furniture-as-a-service model has attracted big names as customers, including Electrolux, Vovo, and Netflix.

Brief about Banco Santander

Founded in 1857, Spain-based Banco Santander claims to be a leading commercial bank. It aims to provide open financial services globally. It is committed to sustainability, including raising €220B in green financing by 2030.

The bank operates through five global businesses: Retail & Commercial Banking, Digital Consumer Bank, Corporate & Investment Banking (CIB), Wealth Management & Insurance, and Payments (PagoNxt and Cards).

As of Q1 2024, Santander manages €1.3T in funds, serves 166 million customers, operates 8,400 branches, and employs 211,000 people.

Santander Corporate & Investment Banking (Santander CIB) supports corporate and institutional clients with tailored, sophisticated financial solutions, focusing on responsible banking practices.