Finland’s Mjuk has successfully raised €2.5 million in funding to enhance its furniture re-commerce marketplace, with participation from key investors such as Lifeline Ventures, Superhero Capital, and Trind VC. This funding aims to bolster Mjuk’s commitment to simplifying the furniture buying process for businesses and consumers alike.
Mjuk’s unique offering encompasses second-hand, overstock, and returned furniture that often faces challenges in traditional sales channels. The startup manages the entire lifecycle of these items, handling pickup, cleaning, storage, marketing, sales, and delivery.
CEO of Mjuk, Rickard Zilliacus, expressed the company’s ambitious goal: “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 with the best-value deals and prices.”
The marketplace has found utility among real estate companies clearing redundant furniture during moves or renovations, retailers managing project or showroom furniture, and manufacturers dealing with prototypes and second-grade items.
Mjuk addresses a significant environmental problem, noted Reima Linnanvirta, partner at Trind VC. He emphasized that millions of tonnes of furniture end up in landfills annually, while perfectly good items are discarded due to changing preferences, relocations, and evolving needs. Mjuk aims to give quality products a second life, contributing to sustainability efforts.
The environmental impact of furniture waste is a growing concern, with statistics from the US Environmental Protection Agency revealing nearly a 100% increase in furniture and furnishing waste between 1990 and 2018. Over three-quarters of this waste still ends up in landfills.
Despite challenging circumstances, Mjuk has consistently doubled its revenue each year over the past three years, reaching a total of €3 million in 2022. Operating in Finland and Sweden, the startup’s ambition, backed by this funding round and an equity loan from Finnvera, is to become a category leader in Europe.
CEO Zilliacus interpreted the support from top European funds as an indication that Mjuk’s business and service models are effective and have the potential to capture a significant share of the furniture e-commerce market.