Investment affirms Contorion's’ position as the innovative digital player in the German Online Maintenance, Repair & Operations market
Berlin, 19 October 2016 – Contorion, the eCommerce player for trade and industrial supply has announced today that it has secured substantial investment from major new investors. The dutch investment fund Endeit Capital invested in Contorion. This completes the Series-B financing round after the investment of kloeckner.v, the investment vehicle of Klöckner & Co SE, and existing investors Project A Ventures and Bauer Venture Partners in July 2016. In total, Contorion received a double digit million Euro funding in this Series-B round.
Contorion offers an online platform to sell maintenance, repair & operations ("MRO") products to small and midsized manufacturing businesses and craftsmen. The assortment includes more than 300.000 industrial products in different categories, e.g. power & hand tools, work safety, fasteners and workshop equipment. The company is serving more than 150.000 customers in Germany and Austria and is employing about 100 team members.
The new funding will allow Contorion to further bring innovation into the traditional MRO market. It will help fund the continued expansion of Contorion into new product groups with its A-brand partners. Scaling of domestic sales and marketing activities is part of that strategy. The funding will also be used to enhance the company's customer segmentation and data analytics capabilities, as well as the development of proprietary customer offers and other innovations to further facilitate client needs.
Tobias Tschötsch, Managing Director and co-founder of Contorion GmbH, commented: “We firmly believe that online ordering, data collection and dynamically servicing of MRO products to our clients is the future of B2B supply and we’re delighted to have received significant funding to support our expansion. The investment recognises the unique and independent value of Contorion’s position in Germany.”
Since the launch in August 2014, Contorion has grown rapidly to become one of the largest and innovative online MRO players in Germany, operating a user friendly, high-growth business with over 60 key MRO brands like Festool, Makita, Knipex, Hazet, Wera. Recently, Contorion opened its first retail shop in Berlin facilitating specialised promotions of key leading tool brands to professional clients. Contorion has more than doubled in revenue year on year, already reporting significant double digit million Euro in net revenue for 2016.
With the global 2015 MRO spend being worth €450 billion, of which about €30 billion in Germany, there is a compelling growth opportunity here to grow this traditional MRO servicing model into an online platform. The current online share is less than 5% and is expected to increase to 25% in the coming years. Such shift will improve transparency, data analysis and user friendliness of search and ordering. As the industrial world becomes more connected technologically, customers want real-time access to information, ordering and just-in-time delivery of products.
Christoph Neuhaus, Managing Director of Endeit Advisors, said: “Contorion allows craftsmen and industrial companies to fully concentrate on their business. By the use of innovative data technology and best-in class service for B2B customers, Contorion replaces existing purchasing processes, e.g. via catalogs, sales agents or retails shops – everything is delivered with one click. With this offering, Contorion was able to grow strongly and gained an innovative leadership position in the German B2B eCommerce market. We’re proud to support the innovative and entrepreneurial founder team and we’re excited to be working with Contorion as the company enters the next phase of its development.”