Koala Living could be looking at an IPO at a valuation of AU $400 million during the year. Co-founder Dany Milham was famously known for starting the tech/perishable delivery service Milkrun, which was thereafter sold to Woolworths for pennies on the dollar. Dany had spoken about the failure of Milkrun and what an impact it had on the venture capital market as well. Putting all that aside, he plans to focus on what is yet to come with regard to Koala.
Why did Koala initially cancel the IPO idea?
Koala’s decision to defer its AU $100 million IPO is indicative of a broader recalibration underway in the direct-to-consumer retail segment. The move reflects a shift in investor and operator priorities from growth velocity toward durability of business models. In an environment defined by trade policy uncertainty, inflationary cost pressures, and persistent supply chain volatility, retail brands are reassessing capital market strategies. The emphasis is increasingly on operational efficiency, brand differentiation, and unit economics rather than near-term liquidity events. This pivot aligns with a sector-wide trend: companies are consolidating and refining existing operations to build resilience against external shocks, positioning themselves for longer-term value creation rather than short-term market access.
Key Information about the Potential IPO
Koala Furniture is seeking a valuation of roughly A$400 million ahead of a proposed IPO in the first half of 2026, with plans to raise about A$100 million in new capital. The bookbuilding may begin as early as March, subject to market conditions and investor appetite. Share ownership remains tightly held, with co-founders Dany Milham and Mitch Taylor each controlling approximately 25.4% of the business, alongside key investors including Perennial Partners and cricketer Steve Smith.
Why is Koala a viable investment?
Koala has grown around a direct-to-consumer strategy, beginning as an online mattress brand before broadening into furniture, using rapid delivery, risk-free trials, and simple returns to minimize dependence on physical stores, reduce operating costs, and build strong customer loyalty. The company has expanded beyond Australia into Japan and the United States, with plans to enter the UK market, and the U.S. has become a key source of revenue, highlighting its success in overseas markets. Koala has a strong competitive advantage, strong scalability metrics, and growing top and bottom line numbers. This, clubbed with a competent and credible management, could poise Koala for a successful IPO.
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