Made.com has acquired online platform Trouva in an effort to grow its marketplace business.
Trouva’s is a sales platform for independent boutiques and brands, and provides customers with a curated range of homewares, lifestyle and fashion products.
The marketplace will continue to operate as a standalone brand led by the current leadership team of chief executive Alex Loizou and chief operating officer Dimple Patel.
The acquisition of Trouva enchances Made’s strategic priorities, particularly around choice and reach.
The acquisition will expand the homeware SKU count on Made’s marketplace, giving customers emore variety and newness. Meanwhile, leveraging Trouva’s cross-border functionality will increase the distribution coverage for Made’s marketplace product offer.
Made chief technology officer Geert Engels will integrate the two businesses. He has extensive experience in successfully integrating technology functions.
The acquisition will enable Made to scale its marketplace offering, and avoid some anticipated capex spend. It will spend between £13-18 million on both the acquisition and capex in 2022, compared to previous guidance of £15-20 million.
The acquisition will be fully funded by cash and is expected to deliver a strong return on investment.
Made CEO Nicola Thompson said: “This acquisition brings with it an experienced and talented team, a sector-leading technology platform and excellently procured choices of homewares product that will resonate with the Made target customer.
“Trouva’s assortment complements Made’s design-led homeware and home proposition superbly and is a great strategic fit for Made as we continue to enhance our marketplace offer. This acquisition will allow us to significantly accelerate our growth strategy by expanding our curated product range – giving our customers more choice and newness – and scaling the business in key territories both established and targeted by leveraging Trouva’s exceptional cross-border technology.”