LoveCrafts, an online crafts community, with millions of users across 140 countries worldwide, today announced the acquisition of WEBS, America’s Yarn Store.
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 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. Steve and Kathy Elkins will continue to run WEBS..
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.
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.