Investment of millions for Dutch market leader in spare parts
MMG benefits from the trend in having electronics repaired
Laren, 24 July 2018 – The Dutch market leader in the field of spare parts for smartphones, laptops and white goods receives an investment of millions from a group of Dutch investors. This concerns the e-commerce company MyMicro Group (MMG), located in Beek en Donk, Brabant; this is the company behind the ReplaceDirect, Accu.nl websites and the wholesaler Twindis.com.
With an annual turnover of € 22 million MMG is the key player in the Netherlands where private individuals and repairers order their parts for the repair of mobile phones, laptops and white goods. In addition, the company also specialises in the field of battery chargers and batteries for all conceivable devices such as laptops, tools, cameras, medical equipment and bicycles.
The investment is being made by the 5square investment company. Entrepreneurs Patrick Kerssemakers, Frank Hansen, Michel Lieffering and Robert Manders are co-investors. Kerssemakers and Hansen are experts in online retail, founders and until recently shareholders of fonQ, the largest online store for living, cooking and lifestyle. They are also bringing in their expertise in the field of e-commerce.
MMG’s new CEO is Michel Lieffering, who has more than earned his spurs in the field of e-commerce. This includes him being the man behind the Omnichannel transformations of Wehkamp Conrad Electronics, Maplin Electronics and Nedis. Manders has broad experience in the field of finance for e-commerce companies.
Market of 32 billion
The European repair market for smartphones, laptops and white goods is approximately €32 billion. In the Netherlands alone, 17 million smartphones are in use, requiring maintenance or repair on average once every two years. MMG also serves the German, Austrian, Belgian and French markets. The company is seeing the number of orders (now 1250 per day) growing explosively weekly.
The drive towards sustainability plays a huge role in this market: consumers and companies prefer to repair a defective device rather than having to buy a new one. “We let a device live longer and combat material waste,” says Lieffering.
Further expansion of brands
Investors coming on board obtain a majority of the shares. The growth capital provided by the investors will be used for the further development of the brands, the further increase of the market share and further internationalisation. “Together with Patrick and Frank we came into contact with MMG”, says Mark Gitsels of 5square. “We immediately saw the potential of this company at this time. In addition to capital, we’re also bringing knowledge: we’ll support the management to realize further growth.”
As co-founder of one of the most successful webshops in the Netherlands, Patrick Kerssemakers sees the potential for the repair market of MMG: “I see the opportunities and I’m looking forward to making an active contribution to the renewed marketing and sales strategy of MMG.”
MMG has a database with around one million different articles. Without having all these products in stock, the company has developed unique software that can be used to predict which part should be in stock on the basis of click behaviour in the web shops. With this, the company achieves a service level of more than 95 percent, which means that 95 percent of the items that are ordered can actually be delivered immediately. CEO Lieffering: “A dream scenario for investors because there are a lot of opportunities.”
MMG was founded in 2003 by the twin brothers Maikel and Erwin Verstegen. The e-commerce company from Beek en Donk is an example for the industry: parts ordered before 23:00 hrs will be delivered the next day.
More than fifty of the Netherlands most successful entrepreneurs who have transferred part of their assets to the independent investment company 5square have together helped a large number of Dutch companies with growth capital and knowledge. In total, the invested capital of 5square now amounts to more than €50 million.
The bond that has been keeping 5square for years with these investors is intensive and a lot of knowledge and experience is shared with the companies in which 5square has invested. 5square invests an average of €3 to €5 million per company. Previously the company from Laren invested in the likes of Snappet, De IJsvogel Group, Paazl, SO Connect, Five Degrees and Avion.