Lovecrafts Raises $22m and Acquires WEBS, America’s Yarn Store
By Emily Peagram 01 Feb 2021
The company secured an additional $22m funding from existing investors including Scottish Equity Partners (SEP), Highland Europe and Balderton Capital, alongside Silicon Valley-based debt providers TriplePoint Capital, to facilitate the deal and further invest in LoveCrafts’ next chapter.
The investment and acquisition follow exceptional growth by LoveCrafts as interest in crafting surges globally. The company saw an increase in orders from new customers of 166% from March to November last year, compared with the same period the year before.
The acquisition of Massachusetts based WEBS, the largest online knitting, crochet and weaving business, is a pivotal moment for the LoveCrafts Group as it becomes the market leader in North America in needlecraft. Combining LoveCrafts’ strong tech platform and global community with WEBS’ talent and industry expertise, positions the company to rapidly grow its global customer base.
Steve and Kathy Elkins will continue to run WEBS and assume the roles of Chief Global Yarn Officers overseeing the combined needlecraft businesses worldwide. This will allow the LoveCrafts team to further develop their content, commerce and community platform for crafts and continue to build their private label offering. The investment will also allow for expansion into new craft categories and new geographies to increase LoveCraft’s share of a global market worth over $100 billion. LoveCrafts’ unique platform provides a breadth of inspiration, commerce and social connections and has brought together designers, brands and makers from across the crafting world to build a unique and thriving community.
Sir Peter Bazalgette, Chair of the Board of LoveCrafts, said: “The integration of WEBS into LoveCrafts is another key landmark for our business as we focus on reinventing traditional crafts for a digital age and becoming the end-to-end destination for crafting enthusiasts across the globe.”
Taylor Wessing LLP provided UK legal advice on the fundraise and Wilson Sonsini Goodrich & Rosati provided US legal advice on the acquisition. EY provided tax structuring and financial and tax due diligence advice to LoveCrafts.