Amsterdam-based e-commerce acquisition company Dwarfs has secured €30M in debt financing from London-based North Wall.
The funds will be used to finance new acquisitions, including the immediate acquisition of Slaapkalm (weighted blankets), Calmzy (weighted blankets and bedroom accessories), Litollo (pregnancy pillows), and Kristie’s Kitchen (cutting boards and splatter screens).
Dwarfs CEO Demian Beenakker says, “These are relatively young companies with a strong portfolio of niche products in lifestyle and home furnishings. Our know-how and clout will enable us to help them grow quickly on the international stage and allow the revenues to multiply, while the fourth already operates across multiple geographies.”
The latest funding round comes three months after the company secured €7.5M in its Series A round of funding.
North Wall Capital focuses on providing opportunistic and flexible private capital to Western European businesses and asset-backed opportunities. The UK firm currently has around €800M of assets under management.
Founded by Demian Beenakker, Dwarfs is the first e-commerce scaleup in the Netherlands aiming to acquire and consolidate online stores achieving rapid growth on the bol.com partner platform (LVB – Logistics via bol.com) and, in some cases, internationally through Amazon (FBA – Fulfillment by Amazon).
In addition to the current funds, the company is looking to secure further additional equity capital from investors over the course of September 2021. The company is also focusing on a larger debt and equity-based Series B round by the end of 2021.
By the end of this year, Dwarfs aims to acquire 20 successful online marketplaces (with revenues ranging from €0.5M to €10M) to pursue exponential growth at the domestic and international levels.
The company is focusing on online stores in areas like Garden & Outdoor, Tools & Home Improvement, Health & Household, Pet Supplies, and Sports & Outdoors goods
Together with the online kitchen store AMCO, which was acquired in May 2021, the company’s annual revenue is €11M, following five completed acquisitions.
How does it work?
After each acquisition, online growth experts at Dwarfs take over the operation of the online store, eliminating the burdens associated with growth away from the entrepreneur.
By operating more efficiently and focusing on growth through local and international marketplaces, the online store’s team can focus exclusively on its strengths.
“That way, we’re able to grow the margins and achieve a five-fold or ten-fold revenue very quickly,” says Beenhakker.