Merito Partners’ (Merito) growth capital fund has committed to invest 1.55 million euros in modular home manufacturer MYCABIN. The funding will be used to develop MYCABIN’s products in export markets, expand production facilities and increase production capacity.
MYCABIN offers high-quality industrially produced Scandinavian design tiny houses that can be placed ready-made anywhere where construction is permitted. With four all-season timber frame models available, these houses can be combined and connected to a terrace, and come fully equipped for comfortable living. The main advantages of buying a tiny modular house are faster turnaround time, quality, simplicity of the process and lower, predictable costs. MYCABIN houses are made from high-quality sustainable materials.
So far MYCABIN has installed more than 40 houses in Latvia. Merito’s investment has given the company an opportunity to expand its production facility near Riga. This will increase the production capacity to ten houses per month and speed up deliveries. There are fully equipped demo houses available in the factory so customers can review options and make their choice. The expanded premises also provide an opportunity to store ready-made house models. As a result, customers can receive a standard design tiny house in two weeks.
In 2022, MYCABIN started collaboration with partners in the USA on a franchise basis. Franchisee manufactures and distributes MYCABIN houses in the USA. MYCABIN houses are produced in a 3,000 square meter facility in Chicago, Illinois. This year, the first deliveries have already been made to customers in Connecticut and Maine.
Ģirts Draugs, chairman of the board at MYCABIN: “The demand for tiny modular houses is growing as the costs of energy, materials and construction increase. MYCABIN has experienced rapid growth in the Latvian market and quickly attracted the interest of collaboration partners in the USA and elsewhere in the world. We are pleased that Merito’s investment will give us the opportunity to develop new products, enter new export markets and streamline production processes. While expanding our operations in export markets, Latvia will remain as R&D center of new house designs.”
The transaction between Merito and MYCABIN is structured in tranches, making Merito a minority shareholder of the company.
Mikus Janvars, co-founder and managing partner at Merito Partners: “Our private equity fund’s portfolio consists of competitive companies with export and investment return potential. MYCABIN has a scalable and sustainable business model that can be developed across geographical markets. Results in the USA are a good testament to that. We highly appreciate management team’s focus on sales and customer satisfaction.”
Sampsa Auvinen, timber industry professional with 30 years of management experience in Finland, Baltics, Great Britain, France, Germany, Ghana and Sierra Leone, will join MYCABIN becoming a minority shareholder and Chairman of the Supervisory Board. Sampsa is the chairman of the board of European Confederation of the Woodworking Industry (CEI Bois).
About MYCABIN
MYCABIN started its operations in 2020, offering timber frame holiday homes of various sizes that can be combined as a set. MYCABIN homes feature functional Scandinavian design that has been praised by the architecture and design magazine Dwell, the internet magazine Designboom and other media. MYCABIN offers conveniently and quickly available vacation homes with easy-to-understand and transparent pricing, simple ordering process, standardized assembly options and fully furnished house models down to the last detail. The most popular MYCABIN models My Milla 25 and My Milla Long are designed to make use of maximum vertical space, with the living space located also on the second floor.