Dignity, a major U.K. funeral service provider, has acquired digital end-of-life services startup Farewill in an all-shares deal valued at £12.9 million ($16.8 million). Farewill, which was founded in 2015, offers online tools for writing wills, managing probate, and arranging cremations. The acquisition aligns with Dignity’s strategic ambitions to expand its digital transformation and capture a larger share of the death care services market, projected to reach $190 billion by the end of the decade.
Farewill is part of the growing “death tech” sector, which includes services designed to assist with memorializing loved ones and supporting those in grief. Over the years, the startup raised around $39 million from investors such as Augmentum Fintech, Highland Europe, and Wise co-founder Taavet Hinrikus. Despite this, its current valuation of $16.8 million represents a steep decline, as reports from earlier this year suggested that one of its investors, the VC arm of Daily Mail and General Trust, had previously cut the company’s valuation by two-thirds.
Although Farewill’s latest financial figures show growth in gross sales (+31.4%), revenue (+36%), and gross profit (+88.9%) in fiscal year 2023, the company was not yet operationally profitable, reporting a loss of £4.2 million in EBITDA. Still, these losses were half of what they were the previous year, showing some improvement.
The acquisition will be funded through a share-for-share exchange, with Farewill’s shareholders receiving stock in Castelnau Group, the majority shareholder of Dignity. This is part of a larger strategy to integrate Farewill’s digital expertise with Dignity’s longstanding presence in the funeral services market. Dignity operates over 40 crematoria across the U.K., and Farewill’s online platform is expected to complement its existing services.
Farewill will continue to operate independently under its own brand post-acquisition, with co-founder and CEO Dan Garrett emphasizing the alignment of the companies’ missions to simplify the end-of-life process. Regulatory approval is still required, and the deal is expected to close by January 1, 2025.
Featured image courtesy of Farewill
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