This all-cash transaction is one of largest for a direct-to-consumer brand in Singapore, and is the largest for Una Brands thus far. ErgoTune is an ergonomic office-chair maker and EverDesk+ makes adjustable desks. Both brands were founded by Joshua Chan, Lye Yi Hao and Tan Jun Kiat in 2017.
The two brands reported revenue growth of 150 percent in 2021, with revenue above S$13 million for the year. This puts the brands neatly into Una Brand’s criteria for acquisition companies with annual revenue ranging from US$300,000 to US$20 million.
Kiren Tanna, co-founder of Una Brands, said: “We also got along great with the exceptional founding team, and shared a common vision for the brands and its plan to establish them as the preferred ergonomic working choice, not just in Singapore but also abroad.”
The founders of ErgoTune and EverDesk+ cited similar culture and values, as well as the willingness to match their ambitious expansion plans as a factor for selling the brands to Una Brands. Una Brands was an attractive choice because of its experience in scaling brands.
International and regional expansion is on the cards for the two brands post-acquisition, focusing first on Australia, which contributed more than 15 percent of overall business revenue for Q4 2021 after the launch of the brands there; Una Brand’s plan for expansion impressed the founders of ErgoTune and EverDesk+.
Lye said: “In the short time that we met with them, their Australia-based team was able to put together a growth strategy that included expansion into Amazon in early 2022, along with an online-to-offline expansion through a showroom in Sydney.”
After Australia, the US and European markets are next in line, with plans to expand to one of these markets by the end of 2022. Lye added: “We’re exploring the European and US markets, where we’ve seen significant growth in the ergonomic furniture market, with the shift towards hybrid work arrangements.”
Even as the founders cash out the brands, Una Brand’s Tanna said they would still be partnering closely to grow the brands in the coming years.
“As part of the transaction – we have offered the founders attractive upside sharing, to allow both parties to continue to benefit as the brands grow both domestically and internationally,” he said.