Flooring firm set for expansion after landing £8m funding deal
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Hinckley-based UK Flooring Direct has landed an £8m investment from BGF.
The funding comes as the firm says it expects revenue to top £50m this year, having doubled sales over the last 24 months. The business was originally set up by CEO Jason Ashby in 2005 with £299 to purchase a website.
UK Flooring Direct expanded into a second site in Coventry last month with extended warehouse, office space and has plans to create 50 additional roles, taking its headcount to more than 200.
BGF’s investment will be used to scale the brand and support significant range extensions in both existing and new product categories, as well as opening an office in China to support procurement and product development, and ongoing enhancements in customer experience.
UK Flooring Direct says it will be looking to capitalise on ongoing trade sector demand, underpinned by the sector’s increasing move towards digital supply channels.
Ashby said: “We recognised the importance of digital 15 years ago and have invested in building a market-leading technology platform that customers want to interact with and that provides convenient access to the products they’re looking for. This has underpinned our growth to date, however, the pace of digital transformation we’ve all experienced this year has resulted in a surge in ecommerce sales that we have been perfectly positioned to address.
“BGF’s backing will allow us to unlock further growth quickly, expand our market share and move into complementary markets. We have built a strong relationship with the BGF team which understands our long-term ambitions and have a good record of successful investments in the sector. The scale of BGF’s portfolio, reach and influence, combined with a supportive local team in the Midlands made them the obvious partner.”
Aaron Baker and Subi Inayat from BGF led the deal with support from Gurinder Sunner, head of BGF’s Midlands office.
Baker said: “With a strong, experienced and entrepreneurial management team, this is a business that deeply understands customers through its data-led approach, and the result is a truly market-leading ecommerce proposition capable of significant scale.
“Flooring represents £4.4bn of the £20bn UK retail home improvement market. With over £1bn of flooring purchases already online, and growing, UK Flooring Direct’s market insight and ecommerce pedigree makes it well placed for further growth. We look forward to working with Jason and the team to achieve the next milestones in the company’s upward trajectory.”