IMPROVED advises Dwarfs on attracting Debt Financing from North Wall Capital

  • Date September 1st, 2021
  • Transaction type Growth Financing
  • Sector Technology
  • Sub Sector E-Commerce Aggregator
Further Info

E-commerce scaleup Dwarfs (“the Company”) reached an agreement with European Special Situations investor North Wall Capital to provide €30 million in debt financing. IMPROVED acted as the exclusive financial advisor to the Company during this transaction.

Founded in December 2020 by a group of serial (e-commerce) entrepreneurs, Dwarfs follows the recent emergence around the concept of acquiring and consolidating smaller profitable e-commerce businesses which operate on marketplaces such as Bol.com and Amazon. Dwarfs is the first-mover on the largest Benelux marketplace, Bol.com, and is determined to become a large Amazon FBA player in the European markets.

The Company executes a buy & grow strategy, applying a data-driven approach to acquiring brands, and targets profitable E-commerce Brands active in categories offering long term defensible high margins. Leveraging its unique dominant first-mover position on the Bol.com marketplace, Dwarfs looks ahead to expanding its presence across Europe using the Amazon marketplace and fulfilment by Amazon (FBA) network as its growth accelerator.

In parallel with securing the credit facility provided by North Wall Capital, Dwarfs closed in on four new acquisitions and is outpacing its initial growth targets for this year. With a bulging pipeline of opportunities, Dwarfs is now considering raising additional equity capital by the end of this year to fully capitalise on the thriving and global pivotal consumer change towards E-commerce marketplaces while entrenching their leadership position in the Benelux Amazon FBA & Bol.com LVB market.

“There are many e-commerce companies in operation and we can make acquisitions faster than expected. At the same time, capital markets, especially in the UK and North America, are showing great interest in financing our activities and providing extra capital.The IMPROVED team has done great work advising us during this dynamic and competitive process to realise the desired outcome for Dwarfs. IMPROVED’s entrepreneurial spirit and deep understanding of high-growth technology companies & deal-making were fundamental in the successful deal with North Wall Capital.”

Demian Beenakker

CEO, Dwarfs

“We are pleased to be partnering with Dwarfs, which has significant geographic and sector expertise, to support the Company as it enters the next phase of its development. Our recently launched dedicated e-commerce lending strategy demonstrates the strength of our conviction in the growth potential of this market, working with companies like Dwarfs to capitalise on the ongoing transition of retail sales to online marketplaces.”

Fabian Chrobog

Founder and Chief Investment Officer, North Wall Capital

"We are proud to have supported another Dutch high-growth technology company in realising the next step in their impressive journey to date. It was a pleasure to be working with the amazing Dwarfs, a unique team of E-commerce experts. The EUR 30mn debt financing from North Wall Capital will allow Dwarfs to double down on their strategy to become the dominant Amazon FBA & Bol.com LVB player in the European markets.”

Manus Weber

Director, IMPROVED

“Growth financing for high-growth technology companies is not a “one size fits all," and this transaction confirms that, and strengthens IMPROVED’s leading position in the (Dutch) Technology landscape.”

Frank Verbeek

Managing Director, IMPROVED