Tiendeo closes its sale to an Italian competitor for up to 35 million euros

New relevant sale of one of the veteran startups on the Spanish scene. Tiendeothe platform to digitize the mailing of large distributors, has closed its sale to the main Italian rival. DoveConvenient will pay up to 35 million euros in an operation that will be paid, fundamentally, in cash with a part in shares (facing a potential IPO) and a ‘bonus’ for the founding team that controlled more than 60% of the shares. The company had among its investors the Cabiedes & Partners fund and other business angels such as François Derbaix, Jesús Monleón or the Encinar brothers, founders of Idealista.

the startup born in 2011. The sisters Martin (Eva and Maria) and a friend, Jonathan Lemberger, were looking for an innovative idea for the advertising and mobile use sector with the aim of delivering to users all the offers of physical stores in a digital way. Since 2013, the date of the last outstanding financing round, they have become self-sufficient and profitable. In recent years they have had several approaches. Finally, eleven years after that foundation comes the purchase.

In total, as confirmed by knowledgeable sources to La Información, the Italian group will pay a total of 24 million euros in cash; 7 million in new shares to be issued in an upcoming IPO on the stock exchange, and 4 million of what is known as ‘earn out’ which would be distributed among the founding team based on a set of company performance goals. That amount paid in future titles may be paid in liquid money in the event that the planned stock market debut is not completed.

Tiendeo is controlled by the founding team that has 21% of the shares each. As the main external partner is Cabiedes & Partners which holds almost 19% of the titles. And then there are a number of ‘business angels’ close to the Seedrocket accelerator, such as Jesus Monleonand others like Francois Derbaix (founder of Rentalia and TopRural and today co-founder of Indexa Capital) or Inaki Berenguer, creator of Coverwallet. In total, throughout its history, the company has raised just under a million euros of external capital.

the buyer is DoveConvenienthis rival in Italy, which has a model very similar to yours and a significantly larger size. As was the case with the Spanish, she had been without external capital for more than five years. The last round that she executed was in 2015 with the irruption of Highland Capital Partners, which was a shareholder of the Spanish Social Point, sold to the video game giant Take Two. It operated mainly in Italy and the United States with other brands. The founder is Stefano Portu.

With this transaction, which has been communicated this Tuesday to the workforce made up of more than 200 employees, a stage of more than a decade of experience as an independent company managed from Spain with a relatively low profile of these two engineers is closed. In 2014, it invoiced 2.3 million euros with a net profit margin of around 15%. In the year 2020, especially marked by the coronavirus, its income amounted to almost 10.5 million with a net profit of 766,000 euros. The goal was to close last year with 13 million.

Its income comes mainly from Spain, Italy, France and Mexico. Initial business model focused primarily on advertising for large distributors such as Mercadona, Carrefour, El Corte Inglés or Zara. Later, starting in 2019, they introduced some other weapons to diversify the business with digital marketing products such as ‘cashback’, which allows you to save on your daily purchases through direct refunds on selected products, and software integrated into your system advertising with Google and Facebook.

This is one of the first outstanding sales of this year 2022 in the Spanish startup ecosystem. In 2021, several relevant transactions took place, such as the Packlink by the American giant Stamps; that of Asti Robotics by the Nordic ABB for 160 million; that of Deporvillage by JD Sports for up to 140 million or that of held by Norway’s Visma for 190 million. At a time when listed companies have undergone a certain adjustment, the sale and purchase operations carried out by startups that take out the checkbook are beginning to stand out, as has been the case of Tiendeo with DoveConvenir.