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Digital-First Tylko Raises €22 Million in Series C as Part of Its Commitment to Set New Standards in the Furniture Industry
The new investment shows confidence in Tylko's offering of premium design coupled with a user experience that puts the customer in control. The brand's unique business model is premised on its belief that through investment in innovation and cutting-edge technology, the furniture industry can be swayed from 'fast furniture' towards durable, user-first products. By embedding conscious consumption in everything it makes, Tylko incorporates sustainability into high-quality and well-designed products.
Angel investors in this Series C round include Brian Walker , former CEO of furniture giant Herman Miller , who had been advising Tylko prior to his investment, and Mark Williamson , COO of renowned US-based online classes platform MasterClass. As part of this investment, Rami Kalish from Pitango Ventures, Mikko Kuitunen from Evli Growth Partners and Brian Walker will join the company's Supervisory Board.
Tylko has seen sales during the pandemic rise by 132%, as its future-proof business model adopts an online-only, direct-to-consumer (D2C) and made-to-order approach. Individually designed by the customer from home, based on the principles of parametric design, each item is an individual solution. From each order Tylko's unique proprietary software automates the manufacturing process for its production partners: a directly scalable process.
These advantages have driven the €33 million in funding which Tylko has raised to date.
Tylko will use the Series C capital to find the next generation of creators and talent who will help to drive the company's mission and vision to make ever-better products through industry-leading technology and a personalised approach to design.
The successful Series C funding round comes off the back of a strong year for Tylko. With the pandemic transforming homes into workplaces, schools and beyond, our interiors have never been more important. Tylko's unique offering - environmentally conscious, customisable, premium design - has struck a chord with taste-conscious and environmentally minded consumers alike.
In 2020, during the first lockdown, the company saw a 40% MOM growth in trade, with sales from June to August tripling compared to the same time period in 2019. Last year alone, Tylko served over 30,000 satisfied customers.
The furniture market is one of the largest consumer categories. Its online penetration was experiencing a Compound Annual Growth Rate (CAGR) of 14% before the Covid-19 pandemic, creating market potential in the future. The total furniture market size in Europe and US in 2020 was €341.1 bn. Tylko's sales have doubled every year since 2015, with 2020 seeing €36m revenue and profitability in Q4.
Tylko is committed to developing contemporary products that positively influence people's lives whilst preventing negative effects on the planet. The furniture industry contributes heavily to the climate crisis: it is responsible for over a billion trees falling every year, alongside 670 thousand tonnes of landfill in the UK and 10 million tons in the US. Despite the increasing importance of climate, this trend continues to accelerate.
Constant product rotations and disposable furniture have become the norm across the entire industry, with badly sourced materials compounding the issue. Tylko wants to transform this behaviour with a product that is perfectly adjusted to the individual's space and needs, is easy to assemble and disassemble, and provides a hassle-free product experience. Every item is a durable, individual solution, thereby requiring less consumption and so helping the planet.
As part of the €22 million investment, Tylko will continue to invest in:
From its founding in 2015, Tylko began to put together a workplace where employees have the freedom to create, develop and contribute towards the industry. 2021 offers an enormous opportunity to rapidly expand its team which already includes 140 specialists, investing in the best talent in the industry.
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Additionally, the new funding will support Tylko's further expansion into markets beyond Europe as well as the launch of new product categories. Currently, Tylko's portfolio consists of the original Type01 in Plywood and Veneer and its successor the Type02, two product families in which customers can configure anything from a bookcase to a shoe rack to a TV stand.
In late 2020, Tylko introduced a new product category, with a new version of the configurator and extra features. This illustrates how easily Tylko can expand its product portfolio: simply with further software upgrades, a whole new product family can be made. Further product development in this way is planned for 2021.
For more information please contact press@tylko.com.
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Tylko Founders. From left: Jacek Majewski , Hanna Kokoczyńska,
Benjamin Kuna , Mikołaj Molenda.
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