- Posted by: Qualitas Funds
- Category: Acquisitions
We are pleased to announce the addition of Once Upon Publishing AB to the Qualitas Funds II portfolio through our Scandinavian manager.
Located on the northwest coast of Sweden and coming out of the award-winning Scandinavian design agency North Kingdom, Once Upon is an easy-to-use mobile application for creating personalised photobooks. The investment draws upon the structural growth theme of digital consumption and taps into the EUR 3Bn photobook market. Although the wider photobook market is growing at an annual rate of 3-4%, the mobile segment of the market is growing at over 20%. This rapid growth is driven by a generational shift in the use of mobile technology. While the phone is a great tool for capturing photos, memories are increasingly lost in the deluge of digital photo storage. Once Upon displays exceptional growth metrics: ~250% revenue CAGR in the past two years.
Our GP has acquired 35% of the company after more than three years of regular meetings with the company. When the founder and management team expressed more concrete interest in consulting external expertise, the GP was able to quickly gain exclusivity. The company also received an offer from a strategic buyer at a significantly higher valuation. This buyer will likely remain interested in acquiring Once Upon down the road.
The GP has a clear plan for Once Upon based on past experience with similar companies. The manager will look to deploy Once Upon’s digital toolbox to focus the product roadmap, improve conversion and unit economics, scale up marketing and explore further opportunities for internationalisation.