Canadian online furniture retailer Cymax raises $25 million, eyes IPO
TORONTO (Reuters) - Online retailer Cymax, a company that sells furniture in the United States and Canada, has raised $25 million in its first funding round and could look to go public as early as next year, its top executive said on Wednesday.
The financing was led by Frind Holdings, BDC Ventures and Salman Partners. Frind Holdings is a venture of Markus Frind, founder of dating website PlentyOfFish, which is being sold to IAC/InterActive Corp's IACI.O Match Group.
Cymax plans to use the funds to expand its online retail website, launch an e-commerce platform and roll out technology that makes shipping easier and faster for retailers.
“We are a technology company first that happens to sell furniture,” Chief Executive Arash Fasihi said in an interview.
A number of factors have to fall in place and the market conditions need to be positive to move ahead with plans for an initial public offering, he said.
Sentiment has been robust for Canadian technology companies this year, and capital raising announcements have come from Shop.ca, Lightspeed, Kik Interactive, Shoes.com, Influitive, Payfirma and Real Matters. A successful initial public offering by Shopify SH.TO in both New York and Toronto further fueled optimism for the sector.
Founded in 2004, Burnaby, British Columbia-based Cymax has been recording annual sales growth of about 40 percent in the past decade, Fasihi said. It expects to post revenue of C$180 million ($138.74 million) in 2015, up from C$124 million last year. About 97 percent of its revenue comes from the United States and the rest from Canada.
The company sells products from hundreds of brands, including Stanley, Tommy Bahama and Coaster.
Its closest competitor is Wayfair Inc (W.N: Quote), a Boston-based e-commerce company with a market capitalization of about $3.3 billion. Major retailers such as Amazon.com Inc (AMZN.O: Quote) and Best Buy Co Inc (BBY.N: Quote) also sell furniture. Continued...