Online furniture and homewares specialist Made.com aims to float on London’s main market, which could value the etailer at as much as £1bn.
Made.com disclosed a “potential intention” to go ahead with an IPO that would raise primary proceeds of £100m.
Cash raised would be used to “further develop growth in existing markets, improve service through reduction of lead times offered to customers, scale its homeware range and give the group increased working capital flexibility”.
An IPO would be the latest among a new generation of online retailers, following strong growth during the Covid pandemic when consumers increasingly bought through ecommerce sites.
Made maintained that “the furniture and homeware market stands at an inflection point of ecommerce adoption, with significant further upside potential given the secular shift to online”.
However, it said the market remains “highly fragmented” and the top 10 companies account for less than 20% of the total market by revenue, but added that its “distinct competitive strengths” would enable it to flourish.
Made said it has “consistently shown strong topline growth”, achieving a 36% gross sales compound annual growth rate over the past five years.
In the year to December 31, Made generated gross sales of £315m and reported an adjusted EBITDA loss of £5.1m.
Made chief executive Philippe Chainieux said: “Made.com has been revolutionising the home and living sector for the last 11 years. Founded in the UK, it is now the leading digitally native lifestyle brand in a sector that is shifting steadily online.
“The business is powered by a technology platform that connects independent designers and makers, allowing us to develop our exclusive product offering.
“The business is fast growing and we have demonstrated the capacity of our brand and customer proposition to travel well. Around half of our sales are outside of the UK and we are aiming to be the leading home destination in Europe for the digital native.”
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