Made.com Group Plc announced the acquisition of Trouva to accelerate the group’s strategic priorities in terms of selection and scope.
Trouva is the platform for discovering independent boutiques and brands, offering customers a selected range of home goods, lifestyle and fashion products. The company has connections with over 700 boutiques across Europe and has shipped to 34 countries around the world this year.
Made said the acquisition of Trouva is expected to accelerate the expansion of home appliance items in Made’s select market, giving customers more variety.
In addition, the group expects that the use of Trouva’s cross-border functionality will increase the coverage of the distribution of Made’s product range on the market.
Following the acquisition, Trouva will continue to operate as a stand-alone brand, led by the current leadership team of Alex Loizou, Chief Executive Officer, and Dimple Patel, Chief Operating Officer.
It is reported that integrating Trouva into Made’s existing technology stack on the market will improve dropship functionality, carrier integration and inventory management.
In addition, the group intends to build Trouva’s existing technology center in Portugal to create a new center of excellence, and Trouva’s integration will be led by Made’s chief technology officer Gert Engels.
The total cash flow from the combined remuneration for acquisition and capital expenditure is now expected to be £ 13-18 million for 2022, compared to previous guidelines of £ 15-20 million. The acquisition will be fully financed with money and is expected to provide a “strong” return on investment.
Trouva is currently making losses and Made said the expanded group will use scale and marketing efficiency and expertise to improve Trouva’s financial performance.
Nicola Thompson, CEO of Made, said: “This acquisition will allow us to significantly accelerate our growth strategy by expanding our selected product range – giving our customers more choice and innovation – and scaling up business in key areas as well. established and targeted by using Trouva’s exclusive cross-border technology. “
Alex Loizou, co-founder and CEO of Trouva, added: “The combination of the two businesses allows us to exploit synergies between our brands, customers and our technology platform. By becoming part of the Made Group, we will continue to fulfill our mission to support independent boutiques and brands by making their curation accessible. “