New funding round put Made.com back in the limelight
In terms of press coverage, Made.com has in the past couple of years taken a back seat while upstart rivals such as the bed-in-a-box merchants have dominated headlines.


Cash raised from investors and public markets from the likes of Eve, Simba, Casper and Swoon have taken centre stage in the three years since Made.com announced it had raised $60 million (£38m) from investors to power overseas expansion.

Since then, Made.com has been relatively quiet, with the retailer getting on with the job in hand and growing its business into — currently seven — pan-European markets including Britain.

That changed this weekend with the retailer's PR advisers following the well-trodden path of placing an exclusive with a Sunday newspaper, in this case about a new commitment from investors (see related) to provide a further £40 million in growth funding.

The retailer also briefed on 2017 trading in a subsequent press release announcing the new funding round, which aims to support more international expansion.

Sales climbed by 40 percent to £127 million in 2017 (see chart below) the retailer revealed.

Chart: How Made.com sales have grown since 2012

Accounts are not yet available for public consumption, but we can safely assume that Made.com remained lossmaking at the group level in 2017.

We can draw this conclusion because the press release cites the retailer achieving "break-even run rate at group level," indicating it was below break-even for the full year.

However, run rate break-even is definitely a positive step and suggests to us that full year losses will come in below the £6.1 million pretax deficit it recorded in 2016 and certainly the £9 million in the year before that.

Made.com also said it was cash-flow positive, which hints at why incumbent investors are happy to commit so much more money to the retailer's plan to build out into the European markets in which it is not yet trading.

There was no further detail regarding the UK/International sales split, though we estimate that British revenues are now worth around £75m–£80 million with non-UK sales of around £47m–£52 million.

There was at one stage speculation surrounding an IPO for Made.com. The new funding round appears to put that idea to bed for the foreseeable future.

Related Story
Made.com raises another £40m to fuel European expansion

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