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Gifting Company Investment Opportunity in Nairobi, Kenya

Distributor of international brands to over 200 modern trade outlets with strong brand recognition.
This Business is on a Premium Plan
Established 10-20 year(s)
Employees 10 - 50
Legal Entity Limited Liability Company (LLC)
Reported Sales USD 1.3 million
Run Rate Sales USD 1.4 million
EBITDA Margin Operating at loss
Industries Gifting + 1 more
Locations  Nairobi
Local Time 5:58 PM Africa / Nairobi
Listed By Business Owner / Director
Status Active
Overall Rating
Partial Stake Sale
USD 270 thousand for 50.0% stake (Native Currency: KES 35,000,000)
Reason: Sales have been significantly affected by constrained working capital and recent disruptions caused ... View More
Includes physical assets worth USD 214 thousand
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Business Overview
- The business is a leading distributor of international gifting and retail brand products in Kenya, focusing on modern trade outlets and Tier 2 shops.
- It holds the exclusive franchise for popular Swedish gifting brands, including gift cards, gift bags, candles, and balloons, commanding a 90% market share in this segment.
- The company also distributes popular Spanish confectioneries, including gummy candies and pick-and-mix candies, enhancing its diverse product portfolio.
- The products are stocked in major supermarket chains like Carrefour, Naivas, Quickmart, and Chandarana, as well as Tier 2 retailers such as Cleanshelf and Eastmatt.
- The primary revenue model involves Business-to-Business (B2B) sales, where the company supplies products to supermarkets, earning through margins from these partnerships.
- With over 266 retail outlets across Kenya, and sales targets set by the franchise, the company is positioned for expansion and continued growth.
- The business has been recognized for its excellence, having won the Franchisee of the Year award twice, highlighting its commitment to quality and service in the retail sector.
- The promoter has over a decade of experience in the industry, leveraging extensive knowledge in importing goods directly from Sweden, ensuring a steady supply chain and market leadership.
Products & Services Overview
Top-selling products include greeting cards and confectionery, distributed to supermarkets along with gift bags, candles, balloons, and pick-and-mix sweets.
Assets Overview
Tangible assets:
- Six delivery vehicles- KES 8.6 million.
- Four sales vehicles - KES 7.5 million.
- Office furniture - KES 1.8 million.
- Electronic gadgets- KES 2.6 million.
- Fixtures- KES 2.6 million.
- Display units- KES 4.6 million.
Intangible assets.
- Brand value.
- Franchise status with a Swedish company.
- Goodwill.
Facilities Overview
The company operates from a 4,500-square-foot warehouse and office space at Ngong road professional center, with monthly rent of KES 225,000 plus VAT.
Capitalization Overview
The business has one main shareholder holding 75% ownership, with two minority partners holding 12% and 13% respectively.
It is currently funded through bank loans totaling KES 64 million, secured by KES 39 million in collateral.
Additionally, the company owes € 1 million to a Swedish firm, repayable over 3 to 5 years from sales revenue.
Recent Activity
  • 1 week, 3 days ago
    Founder & CEO, Mumbai, Financial Consultant connected with the Business
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Disclaimer: SMERGERS is a regulated marketplace for connecting business sell sides with investors, buyers, lenders and advisors. Neither SMERGERS represents nor guarantees that the information mentioned above is complete or correct.
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