Graphite Capital Successfully Exits Wonderbly as Penguin Random House Acquires Leading Personalised Book Publisher

Graphite Capital has sold Wonderbly, the personalised book publisher, to Penguin Random House after a four-year partnership. Under Graphite, Wonderbly doubled its revenue, expanded into adult gifting, acquired two companies, and gained B Corp certification. The company sold over 11 million books globally and integrated AI to scale operations. Penguin Random House will now support its continued growth.

Graphite Capital, a prominent UK mid-market private equity investor, has completed the sale of Wonderbly, the innovative personalised book publisher, to Penguin Random House. The transaction marks the culmination of a four-year partnership during which Wonderbly significantly expanded its product range, technological capabilities, and global reach.

Founded in 2013, Wonderbly has revolutionised the publishing industry with its direct-to-consumer model, combining proprietary technology with print-on-demand production. The company offers over 150 personalised titles and has sold more than 11 million books across 140 countries. Recognised for its excellence, Wonderbly was named Children’s Publisher of the Year at the 2021 British Book Awards and was shortlisted for both Publisher of the Year and Children’s Publisher of the Year in 2025.

Wonderbly’s sustainable approach—printing books on demand in local markets—minimises waste, contributing to its B Corp certification in March 2024. The accreditation reflects its commitment to environmental responsibility, transparency, and social impact.

Strategic Growth Under Graphite’s Ownership

Since Graphite’s investment in July 2021, Wonderbly has more than doubled its revenue and EBITDA, driven by organic growth and strategic acquisitions. Key initiatives included:

• Product Expansion: Development of new book formats and extension into the adult gifting market, which now accounts for 25% of sales.
• Technology & Data Investment: Enhanced data science, marketing personalisation, and pricing optimisation, reducing customer acquisition costs while increasing high-margin repeat sales.
• Acquisitions: Bolt-on purchases of The Book of Everyone (2022) and Historic Newspapers (2023), enabling partnerships with major UK and US newspapers to create personalised books from archival content.
• AI Integration: Early adoption of AI for automation, faster book development, and piloting AI-driven customer service features.

Omar Kayat, Senior Partner at Graphite Capital, says: “We are delighted to have completed this very successful investment for Graphite. Our investment thesis centred on scaling a unique, technology-enabled, direct-to-consumer publishing platform with high margins, no inventory risk and strong international demand. We saw clear potential to accelerate product innovation, consolidate the market through M&A, expand into adult-gifting occasions and deepen Wonderbly’s data-driven marketing capabilities. It has been a pleasure to work with Asi and the senior leadership team who have been committed to publishing excellence and the adoption of new technology throughout our investment.”

A New Chapter with Penguin Random House

Asi Sharabi, co-founder and CEO of Wonderbly, reflects on the journey: “Wonderbly has been built by an extraordinary team, powered by passionate customers, and fuelled by a shared belief in the power of books to spark joy and human connection. A heartfelt thank you to Graphite – our investors and partners over the past four years. I couldn’t have hoped for sharper, more strategic, and hands-on allies. They were instrumental in helping us to make our first acquisitions and begin expanding into books for adults, whilst also encouraging us to invest in technology, data and innovation. Omar, Edgar and Andy’s belief in our mission and consistent support have been instrumental in helping us scale globally and build a brand we’re truly proud of.”

“We’re thrilled to welcome Wonderbly to Penguin Random House,” said Nihar Malaviya, CEO of Penguin Random House. 

“Asi and the Wonderbly team have built a remarkable company at the intersection of storytelling, technology, and thoughtful gifting. We are excited to support their continued growth and to learn from their dynamic, customer-centric approach.”

About Graphite Capital

Graphite Capital is a prominent private equity firm that specialises in supporting mid-market companies across the United Kingdom. Its primary focus lies in management buy-outs, alongside selective investments in growth-stage businesses. The firm typically partners with companies that have enterprise values ranging between £30 million and £175 million.

Graphite has demonstrated significant success within the digital sector. Notably, it completed the sale of Random42—an internationally recognised producer of scientific animation and digital media—to a strategic buyer based in the United States. Current portfolio highlights include Empowering Learning, a comprehensive provider of education services with a strong digital training presence in schools; Explore Learning, a major UK tuition provider catering to children aged 5 to 16; and Higher Ed Partners, which supports universities in delivering online academic programmes globally.

In addition to the sale of Random42, Graphite’s recent exits include Compass, a specialist in children’s services; YSC, a consultancy focused on leadership and strategy; and Nurture, the UK’s top provider of horticultural maintenance and services.

About Wonderbly

Wonderbly is a creative publishing company launched in 2013 with a mission to help individuals feel truly special through uniquely personalised books. By combining imaginative narratives with tailored storytelling, Wonderbly delivers custom-made books designed to bring joy and foster deeper connections among families and friends.

Operating as a certified B Corporation, Wonderbly places a strong emphasis on ethical business practices and positive social impact. Since being acquired by Graphite Capital in 2021, the company has expanded its reach and offerings, including the 2023 acquisition of Historic Newspapers, which enabled new personalised products based on archival content.

In 2025, Penguin Random House acquired Wonderbly, marking a new chapter in its journey. Wonderbly has earned notable recognition, including winning Children’s Publisher of the Year at the 2021 British Book Awards and receiving two nominations at the 2025 edition of the same awards. In 2024, it was also honoured with the King’s Enterprise Award for International Trade. To date, Wonderbly has sold over 11 million books, translated into 11 languages and enjoyed by readers worldwide.