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Cymax Raises $25 Million Series A to Revolutionize Furniture E-Commerce
High-Growth Furniture E-Tailer Makes Purchasing a Couch as Simple as Buying a Book off Amazon
VANCOUVER, BC--(Marketwired - October 15, 2015) - Cymax, a technology focused e-tailer on track to do $140 million in sales this year, has announced it has closed $25 million (USD) in a Series A funding to fuel its analytics-based platform that solves the headache of buying and selling furniture online. The company will launch an end-to-end e-commerce solution for furniture retailers and proprietary technology that streamlines shipping and logistics. Garibaldi Capital Advisors was instrumental in securing the financing that was led by Frind Holdings, BDC Ventures and Salman Partners.
"Right now only 15 percent of purchases in the $235 billion home furnishing category happen online. Inventory management and shipping logistics are major pain points for retailers, and lack of selection, extended delivery times and damaged goods are hindering the market on the consumer side," said Arash Fasihi, CEO of Cymax. "Purchasing a couch or a table should be as simple as buying a book off Amazon. Our technology will empower retailers to bring more choices to market and ensure furniture arrives at consumers' homes quickly and in-tact."
Since launching in 2004, Cymax has connected shoppers with furniture options they couldn't previously find online by partnering with manufacturers and handling shipping and delivery. The company moves over 1.4 million boxes a year and its success has been built on a technology-first approach. Cymax uses predictive analytics to optimize inventory delivery and distribution -- tools it now plans to make accessible to other retailers as it evolves from an online marketplace into a leader in e-commerce technology.
Impressive sales numbers initially attracted the interest of investors like Markus Frind, the 37-year-old Plenty of Fish founder who recently sold his online dating startup to Match.com for $575 million (USD), but it is Cymax's technology and first-to-market opportunity in a lagging e-commerce category that is capturing the long-term interest of investors.
"Cymax is a leader in the multi billion dollar furniture industry, but its multiplatform business model and pioneering approach of logistics and shipping technology for online furniture sales is where I see huge potential for growth," said Frind.
The funding comes at a time of rapid expansion for Cymax, which has seen 71 percent growth over the past five years, with no major external investments until now. The multi-brand retailer currently showcases the products of more than 300 North American manufacturers including Stanley and Hooker Furniture and does 97 percent of its sales in the US.
Cymax Stores Inc. is a privately held Canadian online retailer headquartered in Burnaby, British Columbia, Canada. Founded in 2004 by Arash Fasihi, Cymax focuses on home and office furniture and primarily services the United States. With over 75,000 SKUS, Cymax offers one of the largest selections of online items for home and office.
About BDC Capital
A subsidiary of BDC, BDC Capital offers a full spectrum of specialized financing and investment solutions to help Canadian entrepreneurs achieve their full growth potential. With more than $1.6 billion under management, BDC Capital takes a strategic, patient approach to nurture companies' development over the long term. From venture capital to equity to growth and transition capital, our team of over 100 experienced, local professionals partner with entrepreneurs to identify and meet their needs on flexible terms. Some of the sectors in which we specialize include IT, industrial/clean/energy technology, and healthcare.
About Salman Partners
Salman Partners was established in 1994 and has a strong reputation as an independent, corporate finance, investment banking and institutional trading firm. Salman Partners has offices in Vancouver, and Toronto and is an IIROC Dealer Member, a member of the Canadian Investor Protection Fund (CIPF), and a participating organization of the Toronto Stock Exchange, TSX-Venture exchange, and the Canadian Securities Exchange. Salman recently acquired Woodstone Capital Inc. to add a high net worth retail division to better serve its growing client base.