Investment fund TilTech Capital has become a co-owner of the vertical integrated furniture retailer Divan.ru. Under the terms of the agreement, the fund will own 10% of the company with the possibility of increasing the stake to 25% within a year. TilTech believes that the Russian market, after the departure of IKEA, is facing a shortage of high-quality furniture; the fund expects that in the next five to seven years Divan.ru will achieve revenues of 50 billion rubles.
Divan.ru was founded in 2015. Currently the retailer has 65 showrooms in Russia, 11 in Belarus, 7 in Kazakhstan and 3 in Uzbekistan. The company’s revenue in Russia in 2023 amounted to 6.8 billion rubles (+25% year-on-year).
Thanks to investments from TealTech Capital, Divan.ru plans to increase its capacity with the launch of a new site for the production of cabinet furniture.
The retailer will also expand the franchise network, which it launched in 2023, by signing an agreement with three partners. This year, the company plans to increase the number of partnerships to 13.
In addition, Divan.ru will focus on the development of new product lines, as well as new services for customizing solutions and developing design projects.
A new corporate style, identity and retail book will also be developed for the company. In 2024, tools for working with designers will appear on the company’s website.
“As investors, after the departure of IKEA, we observed a shortage of high-quality furniture on the market and are confident that Divan.ru can take its rightful place in this niche. We see that the company can reach revenue of 50 billion rubles within 5-7 years, while remaining profitable and growing,” said Stanislav Novikov, investment director at TilTech Capital.
Swedish retailer IKEA refused to work in Russia due to the entry of the Russian Armed Forces into the territory of a neighboring state. In 2023, the company sold its last operation in the country.
Author:
Natalia Gormaleva
Source: RB
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