Dwarfs makes three additional acquisitions, tripling revenue to €36 million

European e-commerce scaleup fast-tracks Series B and international expansion


Amsterdam, The Netherlands – October 26, 2021 | E-commerce scaleup Dwarfs continues to grow rapidly with the announcement of three new brand acquisitions – Gadgy, Vita5 and Snoozle – which management estimates will add €24 million in a total annual revenue to the company. Having already acquired eight brands in only six months of operation, these acquisitions instantly triple the revenue of the young company, active since the beginning of 2021, to a total of €36 million, beating management projections by three times. This comes as Dwarfs is on course to exceed €50 million in revenue by the end of 2021 and €150 million by the end of 2022 through organic growth within the Netherlands and abroad and through further acquisitions. To build on this exceptional growth, the company’s board announced the start of its Series B financing round, which will complement the recent €30m of debt financing. The management team has set another ambitious target to raise approximately €150 to €175 million in new debt and equity from British and American investors and lenders.

Dwarfs’ three latest acquisitions are successfully closed and improve the profile of the company: Gadgy, a distributor of home and living innovative products with €17M in revenue, Vita5, a hammocks and cushions developer with €6M in revenue, and Snoozle, a designer and manufacturer of pet beds with €1M in revenue). Dwarfs was able to win these deals over several international competitors to secure and close the three acquisitions.

Kenny Vaes, Chief Acquisition Officer at Dwarfs, commented: “We’ve noticed that the acquisition candidates make their choice not only based on the purchase price, but also on the upside we offer as a team – that is, the prospective growth of revenue and profits. Dwarfs is home to some of the best e-commerce experts in the industry. We fully integrate acquired companies into our portfolio of brands and ensure that each company grows to a new level of revenue. To many company founders, that is a very attractive outlook, and why several have reinvested millions into Dwarfs, further underscoring their firm belief in our approach.”

Dwarfs was the first e-commerce scaleup in The Netherlands to accumulate sufficient capital for acquisitions due in part to the capital invested by Harlan Capital Partners during its Series A funding. With the new capital and debt financing raised from the Series B, the e-commerce scaleup will continue to fund a number of major new acquisitions already in its pipeline. Dwarfs’ management team believes the additional capital also brings the prospect of international expansion within reach.

“We have started our preparations for our international expansion,” explained Dwarfs CEO Demian Beenakker. “Among other necessary steps, we have formed expert teams who will be able to fully capitalize on the dominant local marketplaces in Belgium, France, Spain, Portugal and Poland, for example. Alongside Amazon, those local marketplaces will give a further revenue boost to the companies we have already acquired and we may look to acquire in the future. Our local presence will also put us on the map with foreign e-commerce companies that may be potential candidates for future acquisitions.”




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