West Palm Beach, Fla.− Comvest Partners (“Comvest”), an operationally focused middle-market private investment firm, announced that it has completed the sale of a majority interest in Rugs USA to Francisco Partners, a global technology investment firm. Comvest first partnered with Rugs USA founder Koorosh Yaraghi in 2018 to invest in the leading e-commerce retailer of area rugs and other home décor products. Comvest will remain a significant investor in the business. Terms of the transaction were not disclosed.
Founded in 1998, Rugs USA sells its extensive selection directly to consumers through its website, www.rugsusa.com, and through online marketplaces. The New York City-based company curates approximately 20,000 products to suit every design need and budget, offering a broad in-stock selection, an engaging site shopping experience, and a seamless fulfillment experience that make decorating enjoyable, easy and affordable.
“It has been a great pleasure partnering with founder Koorosh Yaraghi to rapidly scale Rugs USA. CEO Vidya Jwala and the rest of Rugs USA’s talented management team continue to drive tremendous growth in the business,” said Tom Clark, Senior Partner, at Comvest. “Together, we made meaningful infrastructure investments that further strengthened Rugs USA’s leadership position.”
“Rugs USA marks another successful partnership with a founder- and family-owned business for Comvest,” added Kevin LaHatte, Partner, at Comvest. “Rugs USA adds to Comvest’s strong track record and expertise in driving growth via investments in people, processes, infrastructure, and systems.”
Comvest, along with its co-investor Digital Fuel Capital, supported Rugs USA in a number of initiatives, including investing in the company’s leadership team, opening two new warehouses, and implementing IT systems.
“These last years of growth have been extraordinary,” said Mr. Yaraghi. “Comvest’s investments in the business, along with its operational support and genuine partnership in pursuing our mission, helped Rugs USA successfully execute many key initiatives in a relatively short time.”
“As a result of Comvest’s partnership, Rugs USA improved our online customer experience, entered new channels, and expanded our offering. We look forward to furthering our success with Francisco Partners along with the continued support of our existing investors,” said Mr. Jwala.
Evercore and Financo | Raymond James acted as financial advisors, and McDermott Will & Emery LLP provided legal representation to Rugs USA.
About Comvest Partners
Comvest Partners is a private investment firm providing equity and debt capital to middle-market companies across the United States. Since its founding in 2000, Comvest Partners has invested over $6.1 billion. Today, Comvest Partners has approximately $5.4 billion in assets under management. Through its extensive capital resources and broad network of industry relationships, Comvest Partners offers companies financial sponsorship, critical strategic and operational support, and business development assistance. For more information, please visit www.comvest.com.
About Rugs USA
A pioneering e-commerce leader in the area rug industry since 1998, Rugs USA is dedicated to bringing consumers high-quality area rugs and other home decor products from around the world at attractive values. The Company’s expansive selection, compelling website shopping experience, leading value, and rapid fulfillment create a seamless buying experience for the customer. For more information, please visit www.rugsusa.com.