Arete has led a £3 million funding round into an online retailer specialising in stoves, fireplaces and outdoor living, together with backing from newly launched TDC (Tosca Debt Capital) Impact Fund. The deal will help the business invest in its IT systems and build out its route to market via roll out of several flagship stores in key locations around the UK. Additional, a number of key senior hires will strengthen the existing board and help generate future growth, with the business expecting to double its staff over the next three years.
The company was originally formed as Fireplace Warehouse by founder Adam Leah as Fireplace Warehouse in 2005, selling fireplaces and stoves via two websites, Direct Stoves and Direct Fireplaces. The Direct Home brands group also consists of Cotswold Teak and Woven Hill.
The UK home improvement market has seen a significant boost over the past few years, due to a seismic shift in consumer behaviour, driven by pandemic lockdowns. This change in consumer behaviour shows no sign of slowing, with the market set to grow a further five per cent over the short term.
Arete partner, Ben Hatton, who will join the board, said: “It’s a crucial time for the UK home heating market. Not only has there been an increase in consumers choosing to create focal points out of fireplaces in their homes, but in recent years we have also seen a resurgence of wood burning stoves and other alternative means of heating as energy prices have continued to spiral.”
PMSI provided CDD for the deal including analysis of the addressable market, competitor benchmarking and SEO analysis, and an opportunity and risk assessment.
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