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Trind Ventures led the round where the Finnish re-commerce shop Mjuk successfully raised €2.5M in funding. The round was syndicated between Trind Ventures, Alliance VC, Superhero Capital, Lifeline Ventures, and angel investors. €0.5M of the funding was raised as a capital loan from Finnvera. The fresh injection of funding will accelerate Mjuk’s growth towards profitability while strengthening the brand’s reputation in both B2B and B2C segments.
"We are excited to welcome new investors Trind Ventures and Superhero Capital onboard, as well as thank our existing investors Alliance VC and Lifeline Ventures for their continued support towards a more circular economy in the furniture business. Having top European funds back us in a tough funding environment shows that our business and service models are working and have the potential to capture a significant share of the furniture re-commerce market", commented Rickard Zilliacus, CEO and Co-Founder of Mjuk.
Furniture is one of the world’s largest consumer segments and is by far the biggest category in classified ads by volume. However, furniture is creating a steadily growing proportion of the waste that ends up in landfills, according to a study from the Environmental Protection Agency. According to recent estimates, landfills might be filling up with furniture at unprecedented speed due to the decorating boom caused by the COVID-19 pandemic.
Mjuk is an end-to-end circular marketplace, simplifying the process for both companies and consumers to sell furniture that is redundant. This includes second-hand furniture, overstock, and retailer returns that cannot be reintegrated into conventional sales channels. Mjuk handles the entire process, from furniture pickup and cleaning to photography, warehousing, marketing, sales, and delivery, which makes the buying and selling experience effortless. The success of Mjuk’s service is showcased by an unusually high and growing customer satisfaction score of 4.1/5, which is rarely witnessed in the furniture business.
Big real estate and companies like Wolt have also found using Mjuk to be a sustainable way of getting rid of redundant furniture during moves or renovation, while retailers want an easy way to clear out project or showroom furniture. Meanwhile, manufacturers want to lower their costs by selling prototypes or perfectly valid B-class items.
Sustainable design available at Mjuk marketplace
"The problem Mjuk is tackling is huge: millions of tons of furniture are burned or tossed into landfills every single year while perfectly good furniture gets disregarded due to changing preferences, relocation, and needs. Mjuk tackles this by giving a second life to quality products. At Trind, we see that Mjuk is exceptionally well-positioned to take advantage of the ever-increasing trends of the circular economy and conscious consumption, and be the leader in sustainable furniture retail," commented Reima Linnanvirta, Partner at Trind Ventures.
Mjuk’s way of combining efficient operations and technology into an effective re-commerce service is vital, as furniture is big and bulky, which makes storage expensive, and there are hundreds of thousands of different models and price point variations – which is larger than in any other retail category. By simplifying the process for sellers, Mjuk significantly lowers the chances of furniture ending up in landfills.
Since its launch in 2019, Mjuk has grown its revenue every year by 100% year-on-year, with €3M in revenue in 2022, and has a solid client base in Finland and Sweden. In the future, Mjuk aims to be the category leader in Europe, solving the industry’s biggest problems with a seamless service handling overstock while offering consumers the best prices for quality furniture.
"We are extremely satisfied with our collaboration with Mjuk. With their assistance we can address a challenge that is shared by many in the furniture industry – how to handle products that, for various reasons, no longer fit into the regular sales process. Mjuk provides a sustainable and easy solution to this challenge, enabling us to focus on our core business," says Fanny Larsson, Country Manager Sweden of SOFACOMPANY.
Photo credit: neostalgic on Unsplash; Trind.vc
"Our goal is nothing less than to completely disrupt the furniture business and usher in a new, exceptionally convenient way of both selling and buying furniture – always in the best value deals and prices. Fast furniture culture is increasingly catching up to fast fashion in terms of its negative environmental impact. We want European buyers’ first comment to be: ‘Have you checked Mjuk yet?’ before buying any new furniture," says Rickard Zilliacus, CEO and Co-Founder of Mjuk.