Exclusive: Pattern Brands plans buys after $25M raise
Pattern Brands, a family of online home goods and lifestyle brands, raised $25 million in a Series B round, bolstering the M&A chest it’s amassing to acquire brands, the company tells Axios.
Why it matters: The global home decor market is predicted to reach $714.23 billion this year, according to market research firm Research and Markets. That figure could climb to $873.16 billion by 2027.
Driving the news: The new funding was led by new investors Toba Capital, Verlinvest, and BAM Elevate, and follows the $60 million in acquisition capital it raised last year.
Details: Fresh funds will finance Pattern's recent acquisitions of Yield Design Co, a designer and maker of home furnishings, jewelry and candles, and Poketo, a brand that offers stationery and a curated collection of housewares, apparel, and accessories, Pattern said.
- Proceeds will also further fuel Pattern's acquisition streak of brands in the home-life category.
State of play: The company plans to acquire about 20 to 30 brands in the next couple of years, CEO Nick Ling tells Axios. Pattern is looking for popular brands with an engaged consumer base and community, Ling says.
- “With those two things, you have the hallmarks of a brand that matters and will continue to grow in the future,” he adds.
- Ling, who was also behind former brand agency Gin Lane, said Pattern supports these direct-to-consumer businesses with their supply chain, logistics, go-to-market and customer service efforts.
How it works: Pattern has a portfolio of Shopify-based brands that target a younger demographic from college age through when they’re first settling down as a family, getting married and raising children.
What they’re saying: “More people in America are able to create brands today than ever before because of e-commerce,” Ling notes.
- There’s been a proliferation of homegrown brands with the rise of social media and online shopping, he says, and they’ve created their own communities and loyal following.
Of note: Pattern's consolidation spree could help insulate the company from the broader economic challenges currently plaguing the retail world, Ling says.
- “There’s an idea of strength in numbers,” he tells Axios.
- “We want to make sure our products, and the value we have for consumers, is really reacting to what people are going through,” he says, which is why the company offers affordable products at good price points.