The Ikea-backed company’s business model is based on circularity, with furniture pieces that are no longer needed being refurbished and reused.
Nornorm has received €50m to scale up its furniture-as-a-service model from all of its existing investors, including Norwegian private equity firm Verdane, Banco Santander, Inter IKEA, the global franchiser of the Swedish furniture brand, and Philian AB, the private investment company of Swedish entrepreneur Karl-Johan Persson, the chairman of fashion giant H&M.
Close to 11 million tonnes of furniture is thrown out each year in Europe, with around 10% going to recycling while the remainder is incinerated or sent to landfill, according to the European Federation of Furniture Manufacturers.
Nornorm’s business model is based on circularity, with furniture pieces that are no longer needed being refurbished and reused. This closed-loop system not onlyextends the lifespan of furniture but also cuts CO2 emissions by up to 70% by reducing waste in the workplace, according to Nornorm.
“Nornorm continues to demonstrate how circular business models can combine sustainability with commercial success. The company is setting a new standard in the furnishing industry, proving that circularity is not just environmentally necessary but also financially attractive. We are proud to continue supporting Nornorm on its journey,” said Erik Osmundsen, partner at Verdane.
Impact funds
Verdane made the investment through its Idun I growth impact fund, its spokesman James Cook told Impact Investor. Idun I, which focuses on technology-enabled companies that contribute to UN Sustainable Development Goals, was launched in 2022 after raising €300m from investors including Nysnø Climate Investments, Norway’s state climate investment fund and AP3, one of Sweden’s main national pension funds.
As previously reported by Impact Investor, Verdane closed its second impact fund last year after raising €700m. The Idun II fund targets innovative technologies that improve the efficiency and sustainability of value chains. To date, Verdane has raised €9bn in capital, with its funds making more than 200 investments.
AI-driven expansion
Since its foundation five years ago with support from Ikea’s development unit, Nornorm has furnished over 360,000 square metres of office space for more than 36,000 employees at firms including Netflix, Holland & Barrett and Electrolux. It has reached €14m in annual revenue, and is targeting profitability in all of its core markets by next year.
Nornorm plans to use the money to speed up the expansion of its circular model with the use of technology and AI.
“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,” said Anders Munk Jepsen, CEO and founder of Nornorm.
