French startup ManoMano has raised a $ 355 million Series F round of funding led by Dragoneer Investment Group. The company operates an e-commerce platform focused on DIY, home improvement and gardening products. It is currently available in six European countries. Following today’s round table, the company reached a valuation of $ 2.6 billion.
Besides Dragoneer Investment Group, Temasek, General Atlantic, Eurazeo, the Large Venture fund of Bpifrance, AglaÃ© Ventures, Kismet Holdings and Armat Group also participate.
âWe operate in Europe and we are the leader in the online sales sector,â co-founder and co-CEO Philippe de Chanville told me. In France in particular, the company has already been profitable for several years. In 2020 alone, the company’s gross merchandise volume doubled to 1.2 billion euros ($ 1.42 billion at today’s rate).
So why has the company grown given that it is already in a strong position to replicate the same model in other European markets? Because they could and because they didn’t need to. With a high valuation, ManoMano could raise quite a bit of money without having to sell a significant portion of its equity.
In addition to France, the startup is present in Spain, Italy, Belgium, Germany and the United Kingdom. With today’s round table, the company wants to expand its business in the UK and Germany in particular – these are the two largest European markets for home improvement and gardening. .
ManoMano sells products to hobbyists and also targets the B2B market with ManoManoPro. It is already working well in France with very small teams (1 to 5 employees) and the company is extending this offer to Spain and Italy.
The startup will also invest more in its product and build a better logistics infrastructure. âFor the logistics part, we work with third-party logistics companies – we are a technology company,â co-founder and co-CEO Christian Raisson told me.
ManoMano does not have its own warehouses and does not have any inventory. This is why ManoMano plans to recruit 1,000 people over the next 18 months and most of them will be tech profiles.
While ManoMano has 7 million customers, sales of home improvement and gardening items are still mostly done in physical stores. The startup is well aware that it’s not just about having the best products at the right price.
ManoMano works with advisors (or Manodvisors) so that experts can give advice whenever clients need advice. In total, clients initiated 2.3 million conversations with advisors in 2020. Recommendations and advice will be essential to gain market share. And the company is now well capitalized to innovate on this front and differentiate itself from other e-commerce platforms.