French start-up, ManoMano, has raised a Series F funding round of $355 million led by Dragoneer Investment Group, according to a recent techcrunch.com report.
Operating an e-commerce platform that concentrates on DIY, home renovation and gardening items, the offer is currently available in six European countries. After the recent funding round, the company’s valuation has reached $2.6 billion.
In addition to Dragoneer Investment Group, Temasek, General Atlantic, Eurazeo, Bpifrance’s Large Venture fund, Aglaé Ventures, Kismet Holdings and Armat Group are also participating.
“We operate in Europe and we are currently the industry leader in online sales,” Co-founder and Co-Chief Executive Officer, Philippe de Chanville said in the report.
The company has been profitable for a couple of years already, in France particularly. In 2020 alone, the company’s gross merchandise volume doubled to €1.2 billion ($1.42 billion at the recent rate).
With a high valuation, ManoMano might raise quite a bit of money without having to offer a considerable chunk of its equity, according to the report.
Along with France, the start-up runs in Spain, Italy, Belgium, Germany and also the U.K. With the recent funding round, the business aims to develop its activities in the U.K. as well as Germany specifically which are Europe’s two largest markets for home renovation and gardening.
ManoMano markets items to hobbyists and also targets the B2B market with ManoManoPro, which is already working well in France with the company expanding its offer to Spain and Italy.
The start-up will invest heavily in its product and also build a far better logistics infrastructure. Currently ManoMano does not have warehouses or inventory which is why it plans to hire 1,000 people over the next 18 months with most being tech profiles.
While ManoMano has seven million customers, home improvement and gardening sales still mostly occur in brick-and-mortar stores. The start-up is well aware that it is not just a matter of having the best products at the competitive prices.
ManoMano works with advisors (or Manodvisors) to ensure specialists can give advice to customers. Generally, clients have initiated 2.3 million discussions with experts in 2020. Recommendations are vital to gain market shares and the company is now well capitalized to innovate on this front and differentiate itself from e-commerce platforms.