IKEA-backed NORNORM raises €50M as it sits pretty on profitability across core markets

Copenhagen-based NORNORM, a circular workplace furniture solutions provider, has announced that it has secured €50M in a new funding round.

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Existing investors, including Verdane, Inter IKEA, Philian AB and Banco Santander, have participated in the round.

The Danish company plans to use the funding to enhance its circular model by utilising technology and AI to offer a sustainable alternative to traditional office furniture.

“This funding gives us the strength and flexibility to stay in control of our growth path while staying profitable. With our strengthened financial position, we can accelerate the adoption of our circular furnishing model across Europe and further consolidate NORNORM’s role as a frontrunner in the circular economy,” says Anders Munk Jepsen, CEO and founder at NORNORM.

The announcement comes over a year after raising a debt facility through a collaboration with Santander Corporate & Investment Banking (Santander CIB) and the European Investment Fund (EIF).

The funding comes at a time when the company has reached €14M in annual subscription revenue, furnished over 360,000 sqm of office space since its launch, and is operationally profitable in all core markets.

NORNORM: Subscription-based furnishing service

NORNORM, a Nordic scale-up co-founded with IKEA in 2020, offers furniture-as-a-service through a fully circular subscription model, helping businesses cut CO2 emissions by up to 70 per cent compared to buying new furniture.

Built on circularity, every piece of furniture is kept in continuous circulation through refurbishment, reuse, and repair, extending its lifespan and reducing waste.

This approach not only extends the lifespan of furniture by up to three times but also allows businesses to adjust their furniture needs as they grow or downsize easily.

This helps customers save money while reducing waste and emissions in the workplace.

NORNORM’s Furniture-as-a-Service model is now operating in 17 countries and 59 cities, and providing furniture for over 36,000 employees.

The company is headquartered in Copenhagen with offices in Stockholm, Amsterdam, Berlin, and London. Customers include Volvo, Electrolux, Netflix, Wolt, Miro, IWG, Castellum, EDGE, and Holland & Barrett.