The new pinnacle of Swedish e-commerce: Fyndiq joins forces with CDON
Fyndiq, Sweden's number one discount promotion platform, was founded in 2010. The vision of its founders, Christoffer Norman and Erik Segerborg, was to provide a marketplace for sellers to dispose of overstocked products and provide consumers with affordable retail products. This vision is now a reality and Fyndiq has become a gem of the Swedish e-commerce scene.
Earlier on Fyndiq, almost 1,700 active sellers were Swedish sellers.
On the other hand, CDON has been a pioneer of electronics suppliers in the Nordic region. It offers a wide variety of products, from electronics to fashion, home goods and more. One of the founders of CDON is Karl-Johan Persson, who is also the chairman of fashion house giant H&M. His involvement has given CDON the financial resources and strategic vision to become a leader in e-commerce in the Nordic region.
About the founding team of CDON, it is the most "colorful" among the many platforms.
Rolf Nilsson: An IT specialist, he is the Chief Executive Officer (CEO) of CDON Group. During his tenure as CEO of CDON, he was involved in the strategic development and management of the company.
Klas Back: A music producer, Klas Back is a member of the board of directors of CDON Group. He holds a key position on the company's Board of Directors, providing advice and guidance to CDON's decision-making and management.
Martin Forss is an advertising strategist and Chief Financial Officer (CFO) of CDON Group. As Chief Financial Officer, he is responsible for the company's financial management and strategy.
Combining their respective expertise set CDON apart from the early competition. Their common goal is to provide consumers with a convenient, fast and comfortable shopping experience. CDON was founded in 2000 with a team focused on creating Sweden's largest online seller of music. The founders of CDON initially launched a music streaming service on the market, then began selling CDS, DVDS, games and other merchandise. Although CDON did not sell well at first, after changing its sales direction, it quickly became a very successful e-commerce company, growing into an online retail giant in Sweden. Therefore, CDON is known as the "Taobao traffic" in Sweden.
CDON bought a stake in Fyndiq this year for about $100. Fyndiq is valued at around SEK 7.35 billion ($860 million), with CDON paying only SEK 7 million ($820,000) in cash and using CDON shares to pay the rest, so Fyndiq will own around 40% of the combined company.
Here are the key figures for both, at a glance (100 SEK =9 EUROS)
01. Fyndiq and CDON
The merger brings together two e-commerce heavyweights, creating a larger and more powerful market player. Under the terms of the agreement, Fyndiq will become a subsidiary of CDON, and Fyndiq investors will own 40 percent of the newly combined company. This will not only increase market share, but also lead to more growth opportunities for both platforms.
"This strategic move brings together two companies offering complementary consumer products, increasing the focus on efficiency while offering greater scale and profit potential," Josephine Salenstedt, chairman of the board of directors of CDON, said in a press release to Swedish media.
02. Strength of leadership
The combined company will be led by Fredrik Norberg, the head of Fyndiq, and Thomas Pehrsson, CDON's current chief financial officer and acting CEO, will be named chief Financial officer and deputy CEO. This decision is a compelling strategic choice given Norberg's extensive founding experience in e-commerce, logistics and transportation. The integration of this leadership team will enable more innovation and growth.
Karl-Johan Persson, chairman of clothing giant H&M, is one of Fyndiq's main shareholders and will hold a 6 percent stake in the combined company. Fyndiq's owners Christoffer Norman and Erik Segerborg will join the board of directors.
03. Future outlook
The merger is set to change the landscape of the Swedish e-commerce market. Not only does it increase efficiency, it also creates greater scale and more profit potential. The combination of Fyndiq and CDON will address a broader range of consumer needs and provide more opportunities for sellers. This story is an exciting development, and we will be closely watching the future of this digital Swedish e-commerce market. There is no doubt that this market has entered a new golden age.