Retail Channels
06 June 2022
Pinterest, DoorDash and UPS are growing ecommerce via acquisition
Dealboard has M&A and funding news from H&M, Ty Haney, Nestlé, Missguided and more.
Welcome to Dealboard. In this weekly feature, The Current is providing a look at the mergers, acquisitions and venture capital deals making waves in the ecommerce and consumer goods landscape.
This week, acquisitions show how Pinterest is expanding in ecommerce, DoorDash is growing internationally and UPS is adding same-day delivery options for businesses. Plus, H&M leads an investment round, and Ty Haney’s new startup receives funding.
Check out the latest:
MERGERS & ACQUISITIONS
Pinterest makes ecommerce move with acquisition of The Yes
(Image via Pinterest)
Discovery-focused social media platform Pinterest is adding ecommerce talent and technology through the acquisition of AI fashion shopping platform The Yes.
Founded in 2018 by former StichFix exec Julie Bornstein and former Bloomreach CTO Amit Aggarwal, The Yes provided users with a personalized feed that learns their style, and curates a selection of products based on brand, style, and size. With the acquisition, Bornstein will lead a new organization dedicated to “taste-driven shopping efforts” across Pinterest, while the entire team from The Yes will join Pinterest. In turn, Pinterest will be sunsetting The Yes app.
Terms of the deal, which is expected to close in the second quarter of 2022, were not disclosed.
DoorDash acquires Wolt
Local commerce platform DoorDash is expanding internationally through the acquisition of Wolt Enterprises, a Helsinki, Finland-based company that specializes in delivery of items from restaurants, grocery stores and other local shops.
Following the acquisition, DoorDash will be active in 27 countries, including the United States, 23 of which are Wolt markets. While Wolt and DoorDash will retain their own apps, Wolt CEO Miki Kuusi will oversee all DoorDash operations outside the United States.
Terms of the deal, which is now closed, were not disclosed.
UPS acquires Delivery Solutions
Shipping company UPS is acquiring Delivery Solutions, a Texas-based SaaS company that specializes in delivery management and orchestration technology.
Focused on ecommerce, Delivery Solutions provides customers with access to services that provide same-day delivery, ship-from-store and curbside pickup. Following the acquisition, Delivery Solutions will continue as an independent platform, UPS said.
Dia & Co acquires 11 Honoré
Plus-size fashion platform Dia & Co acquired luxury retailer 11 Honoré in a move that’s designed to create “the ultimate destination for shopping across styles, brands and price points in sizes 10-32,” the companies said in an announcement.
Founded in 2017, 11 Honoré carries its own private label collection, as well as brands such as Diane Von Furstenberg, Carolina Hererra, Good American and Tanya Taylor. Now, it will join Dia & Co, a platform cofounded in 2015 by Nadia Boujarwah and Lydia Gilbert that carries brands such as Madewell, Girlfriend Collective, Universal Standard and Third Love.
With the acquisition, 11 Honoré founder Patrick Herning will join the Dia & Co team. 11 Honoré will continue to operate a standalone platform until the two brands are integrated in months ahead, while its merchandise will also be available on Dia & Co.
Terms of the deal were not disclosed.
Missguided acquired out of administration by Frasers Group
UK-based online fashion retailer Missguided was acquired out of administration by Frasers Group.
The news followed what was widely billed in the UK press as a collapse of Missguided. Post-mortems pointed to issues with the company failing to pay suppliers, and increasing competition in the fast fashion space. Under Frasers Group, which also owns Sports Direct, House of Fraser and Flannels, the company will become a standalone business.
The deal was valued at £20m in cash, the Guardian reported.
Go Global acquires Brums Milano
Consumer-focused investment platform Go Global Retail said it acquired Italian children's fashion brand Brums Milano.
It follows Go Global Retail's 2021 acquisition of Janie and Jack from Gap Inc.
Going forward, the company plans to create a "global premium childrenswear platform" by combining technology, ecommerce, digital marketing, sourcing and raw material collaboration from the two brands. It will make Brums Milano a featured brand on the Janie and Jack platform, while investing in artificial intelligence and predictive analytics for Brums.
"We are excited about our first investment in Europe", said Jeff Streader, founder and managing partner of Go Global, in a statement. "We will execute the same successful playbook that we deployed at Janie and Jack by resetting the operational model and investing into the company's digital capabilities."
Nestlé acquires Brazil-based Puravida
Nestlé Health Science is set to acquire Brazilian health food and supplements brand Puravida.
Founded in 2015 by Flavio Passos, Puravida offers organic, natural and plant-based foods, along with clean-label and concentrated supplements. This will help Nestlé expand its portfolio in the area of health and nutrition in Brazil, which already includes oral nutritional supplements, protein powders and ready-to-drink nutritional beverages, the company said.
Terms of the deal, which is expected to close in the second quarter of 2022, were not disclosed.
Luxury Brands acquires Youngblood brands
Beauty company Luxury Brands announced the acquisition of two brands created by medical esthetician Pauline Youngblood: Youngblood Mineral Cosmetics and Youngblood Skin Care. With the acquisition, the brands will accelerate product development, digital marketing, advertising, and both B2B and DTC sales support.
“Youngblood Mineral Cosmetics is a brand already beloved by a cult following of celebrities and makeup artists alike,” said Luxury Brands President and CEO Michael Dodo, in a statement. “We plan to utilize the knowledge that Pauline has already implemented into Youngblood products as a medical esthetician and apply our expertise to spread her message and products on a much larger scale."
FUNDING
H&M leads Series B for Colorfix
UK-based biotech company Colorfix raised £18 million in a Series B investment round.
The round was led by fashion retailer H&M through its investment arm H&M CO:LAB. Participants also included Bombyx Growth Fund, PDS Ventures, Regeneration.VC and SynBioVen.
Colorfix developed a dyeing process that is all biological, and it implemented the technology with initial customer RDD in Portugal. The company plans to triple the size of its team following the round as it prepares expansion in Europe and Southeast Asia. It already has several offices in the UK, and an office in Portugal.
Ty Haney’s blockchain company raises $9.8 million
TYB, the new company from Outdoor Voices founder Ty Haney, raised $9.8 million, Techcrunch reported.
The funding round included participation from existing investors Unusual Ventures, Sogal Ventures and Castle Island.
TYB is the latest venture from Haney, who played a leading role in growing the athleisure category with apparel company Outdoor Voices. TYB uses blockchain technology to help consumer brands build communities centered on customer loyalty, and offer rewards in the form of virtual coins.
FinditParts raises $30 million Series A
FinditParts, an ecommerce platform for commercial vehicle parts, raised $30 million in Series A funding.
The minority financing was led by Crestline Investors, and is the first institutional investment for FinditParts.
Founded in 2010 by David Seewack, the platform is focused on providing a source for medium and heavy-duty truck and trailer parts. It reported 100% year-over-year revenue growth in Q1 2022. With the funding, the company will continue to advance a taxonomy for CVA parts, expand the number of parts available on the platform and enhance parts identification and visual recognition technology.
Onramp Funds raises $42 million
Ecommerce financing platform Onramp Funds raised $42 million in equity and credit, Techcrunch reported. Led by Luther King Capital Management, the funding grows working available for the Austin-based company, which provides data-driven sales forecasts and financing to ecommerce sellers.
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Hunter is joining ABG's portfolio. (Courtesy photo)
Funding
Chamberlain Coffee raises $7M
Chamberlain Coffee, the consumer brand founded by YouTube influencer Emma Chamberlain, raised $7 million in new funding.
The financing included backing from existing investors including Blazar Capital, Chamberlain and United Talent Agency. New investors include Volition Capital, Electric Feel Ventures, L.A. Libations and Noah Bremen, founder of PLTFRM.
The new funding follows the launch of a Ready-to-Drink (RTD) product and coffee pods. Previously, the brand raised a Series A in August 2022.
"Creating a uniquely inviting coffee brand has been my dream for so long now, and having key investors back us allows us to build Chamberlain Coffee in ways that feel fresh and exciting,” said Chamberlain, in a statement. “There are so many products I am eager to develop and projects I'm excited to get working on. With such an incredible team and group of investors I am more excited than ever to see what the future holds for Chamberlain Coffee."
Impact Analytics raises new funding
Impact Analytics, a software company for retail supply chain and merchandise planning, raised new funding from Vistara Growth.
The new investment, the amount of which was not disclosed, comes after Impact raised funding in February 2021 and October 2022 from Argentum.
The funding will help Impact Analytics further develop its Impact Analytics SmartSuite product portfolio, which is designed to help optimize forecasting, merchandising and end-to-end lifecycle pricing. Rather than the traditional forecasting approach of basing decisions on the preceding year, Impact Analytics applies a model that includes 150 variables from internal and external sources, while combining recency and history. Clients include BJ's Wholesale Club, Dick's Sporting Goods, Puma and Tapestry.
Selva Ventures closes $34M Fund II
Selva Ventures, a venture capital firm focused on consumer brands that promote healthier living, closed its second fund at $34 million, TechCrunch reported.
With the new funding, Selva will invest in brands across categories including health, wellness, beauty and personal care. The fund expects to write checks of $1-2 million in seed and Series A startups, while assisting in areas like finance, operations and retail partnerships.
Backers of the second fund include Unilever Ventures, PagsGroup and Obelysk.
Mergers and acquisitions
Authentic Brands Group acquires IP of Hunter
Nautica and Forever 21 owner Authentic Brands Group acquired the intellectual property of Hunter, a 160-year-old British outdoor lifestyle brand known for its Wellington boots.
With the deal, ABG appointed longtime partners Batra Group and Marc Fisher to execute retail and ecommerce operations, as well as continue to expand the brand in the UK and U.S., respectively.
“At the intersection of fashion and outdoor, Hunter introduces another elevated global brand to Authentic’s diverse Lifestyle portfolio,” said Authentic CEO Jamie Salter, in a statement.
Terms of the deal were not disclosed.
IKEA owner acquires supply chain software
The investment arm of IKEA parent Ingka Group acquired the warehouse management software platform Made4Net.
As a result of the deal, Made4Net’s software will be deployed across IKEA’s 482 stores and fulfillment centers. Made4Net will continue to operate as an independent subsidiary of Ingka, with a headquarters in New Jersey. CEO Duff Davidson will remain at the helm of the company.
“Our business currently requires a better fulfillment operations system with more accurate data that better supports handling for our customers,” said Tolga Öncu, head of retail at Ingka Group, in a statement. “Our goal is to become leaders of life at home, serving more people in an omnichannel reality, whenever and however customers choose to meet us.”
SellerX acquires Elevate
European ecommerce aggregator SellerX acquired Elevate Brands, a U.S.-based aggregator.
The combined companies will be known as SellerX Group. It will comprise a portfolio that includes 80 Amazon-native private label consumer brands in categories including sports and outdoors, home, mobile accessories, pets and consumables. The portfolio will span over 40,000 products.
With the deal, SellerX Co-CEOs Philipp Triebel and Malte Horeyseck will lead SellerX Group, while Elevate Brands cofounders Ryan Gnesin, Jeremy Bell and Robert Bell will remain in key leadership positions.
“This acquisition combines our know-how and diversified portfolios of strong brands with a market-leading technology platform and strong operational infrastructure,” said Triebel, in a statement. “By leveraging our combined strengths, I am convinced we are well-positioned to drive further consolidation in the industry.”
Society Brands acquires Wolf Tactical
Ecommerce aggregator Society Brands acquired Wolf Tactical, a tactical gear company.
Founded in 2017 by Tim Wu, Wolf Tactical makes products including DC belts, range belts to weighted vest and tactical backpacks.
"I started Wolf Tactical by myself as a side hustle with very limited knowledge of business and entrepreneurship. A combination of hard work and relentless learning allowed me to build it into a multi-million-dollar business," said Wu who will remain as brand president, in a statement. "With the help of Society Brands, I have access to untapped potential that I would not be able to achieve by myself.”
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