Helsinki-based furniture re-commerce startup Mjuk has secured €2.5m in funding to address the challenges of furniture waste and overstock in the industry.
The funding has been secured from a group of investors, including Trind VC, Alliance VC, Superhero Capital, Lifeline Ventures, and angel investors, with €500,000 in equity loan support from Finnvera.
Mjuk specialises in an end-to-end circular marketplace that enables responsible brands to sell quality design products with attractive prices to consumers who are looking to enhance their circular economy lifestyles.
Trind Ventures led the round where the fresh injection of funding will accelerate Mjuk’s growth towards profitability while strengthening the brand’s reputation in both B2B and B2C segments.
Rickard Zilliacus, CEO and Co-Founder of Mjuk, commented: “We are excited to welcome new investors Trind Ventures and Superhero Capital onboard, as well as thank our existing investors Alliance VC and Lifeline Ventures for their continued support towards a more circular economy in the furniture business.
“Having top European funds back us in a tough funding environment shows that our business and service models are working and have the potential to capture a significant share of the furniture re-commerce market.
“Mjuk is an end-to-end circular marketplace, simplifying the process for both companies and consumers to sell furniture that is redundant. This includes second-hand furniture, overstock, and retailer returns that cannot be reintegrated into conventional sales channels.
“Mjuk handles the entire process, from furniture pickup and cleaning to photography, warehousing, marketing, sales, and delivery, which makes the buying and selling experience effortless.
“Big real estate and companies have also found using Mjuk to be a sustainable way of getting rid of redundant furniture during moves or renovation, while retailers want an easy way to clear out project or showroom furniture. Meanwhile, manufacturers want to lower their costs by selling prototypes or perfectly valid B-class items.”
On the investment, Trind said: “At Trind, we see that Mjuk is exceptionally well-positioned to take advantage of the ever-increasing trends of the circular economy and conscious consumption, and be the leader in sustainable furniture retail
“Mjuk’s way of combining efficient operations and technology into an effective re-commerce service is vital, as furniture is big and bulky, which makes storage expensive, and there are hundreds of thousands of different models and price point variations – which is larger than in any other retail category. By simplifying the process for sellers, Mjuk significantly lowers the chances of furniture ending up in landfills.”
Since its launch in 2019, Mjuk has grown its revenue every year by 100% year-on-year, with €3m in revenue in 2022, and has a solid client base in Finland and Sweden. In the future, Mjuk aims to be the category leader in Europe.
Rickard added: “Our goal is nothing less than to completely disrupt the furniture business and usher in a new, exceptionally convenient way of both selling and buying furniture – always in the best value deals and prices. Fast furniture culture is increasingly catching up to fast fashion in terms of its negative environmental impact. We want European buyers’ first comment to be: ‘Have you checked Mjuk yet?’ before buying any new furniture.”