Verdane partners with Hobbii to build global D2C platform for knitting and crocheting
Verdane, the European specialist growth equity investor, announces an investment in Hobbii, a global knitting & crocheting platform based in Copenhagen, Denmark. As a fast-growing digital consumer business with an expanding international customer base, Hobbii is well-positioned to leverage the larger trend towards traditional crafts and hobbies, a sector that has proved resilient in recent years. Verdane will seek to use its experience backing a number of highly successful European direct-to-consumer businesses to support Hobbii as it continues to scale internationally while enhancing its offering and processes.
Hobbii A/S is a Danish Direct-to-Consumer platform selling yarn, accessories, and patterns for knitting and crocheting. The company has successfully developed its proprietary products and branding channels, with its own private label representing 85 percent of its yarn sales, and encouraged customers to engage with the Hobbii community, browsing and exchanging patterns and crafts. The business has established itself internationally, with operations in over 50 countries across the world, and 12 key markets including the Nordics, Germany and the US.
Hobbii has greatly benefitted from the continued popularity of traditional crafts such as knitting and crocheting, resulting in a highly loyal and tight-knit community of customers globally. The company’s success has translated into sustained strong growth with an annual growth in revenues of more than 80 percent during the period 2019 to 2021.
Verdane has extensive experience backing growing digital consumer businesses, including CAIA Cosmetics, Farmasiet, Swappie, momox and Boozt, and its 28-strong in-house expert team Elevate has delivered over 1,000 value creation projects exclusively to Verdane portfolio companies since launching in 2020. With Verdane as a partner, Hobbii will refine its international presence, and in the near and medium term focusing its efforts on Germany, the US and the Nordics, while further enhancing its products and platform.
Nils Bouchet, Director at Verdane said: “We are proud to partner with the exceptional team at Hobbii to build the leading global yarn universe. Driven by their singular vision, the team has created an industry-leading, tech-enabled platform for growth powered by one of the world’s most sizeable and engaged knitting and crocheting communities. The Verdane team is pleased to deploy our e-commerce and operational enhancement expertise to support Hobbii as it embarks on the next stage of its growth journey to become a global leader in its niche.”
Jens Reimer Olesen, Chairman and co-Founder at Hobbii said: “Hobbii has established itself as a European leader within our niche, and it has been a pleasure to see our business grow on an international scale. In the coming years, our goal will be to truly differentiate ourselves as a platform and community, and to kickstart the next part of our growth, and I think we could not have a better and more experienced partner than Verdane to support us.”
The investment in Hobbii was made through Verdane Edda II. Terms for the transaction are not being disclosed. Hobbii was advised by Financo Raymond James.