We use cookies so our website works and is secure, to analyse our traffic, and to personalise content and advertisements.
By clicking "Accept all" you agree to these purposes and the sharing of your data with our trusted partners and affiliates. You can find out more and withdraw or manage your consent at any time here.
Choose cookies
Shavekit
Follow-on
Shavekit restocks men's bathrooms with razors and other high quality grooming supplies.
Wallington, United Kingdom
Categories: Home & Personal Non-Digital B2C
www.shavekit.com
Investment sought:
Equity offered:
Funded 2 Aug 2016
(pre-money):
Investors 66
Shavekit is now 2.5 years old. We've grown to 8000 members and more than doubled our monthly revenue since our last Seedrs raise.
We've continued our philosophy of lean growth, keeping overheads low and focusing on improving the key drivers of our business performance. This has put us in a great position of burning minimal cash. Since last year we've moved out of our central London office to a combined warehouse and office in Surrey, cutting our rent and fulfillment costs, hired a warehouse team, taken on two flexible customer service staff.
Intended impact
The next stage is to build our product range and speed up our marketing and improvements to our existing products and technology.
The key drivers of the business have continued to improve, our churn, CPA and key metrics are at all time lows (best).
We've started with razors because there is a very clear problem to solve. We feel that the existing choice is very limited, prices are very inflated and the majority of men don't enjoy the process of remembering and shopping for replacement blades.
We restock our customers' blades monthly, bi-monthly, every third month or whatever suits them. The first delivery includes a free handle too. Members can easily upgrade, change their delivery, pause, restart and manage their account online.
Razors are just the beginning, the long term plan is to build a range of distinct men's grooming brands to restock the entire bathroom.
We planned on launching Jack's Shave Cream in Q4 2015, but we made the decision to focus on growing the business before putting in the substantial MOQ. The testing, development, packaging are now paid for and complete however and we plan on launching our shave cream in September 2016.
Substantial accomplishments to date
Our model has never been in better shape. While we have been capital constrained, we would be able to acquire more customers with more cash, but we have seen consistent sustainable growth. We believe the business is in a strong position for accelerated growth with realistic projections based on historical averages of our key business metrics.
- Doubled in size since our last Seedrs round in August '15
- Now 8000 active customers.
- Lean, capital efficient. Year 1 was self-funded.
Monetisation strategy
We sell razors on a membership basis. Margins on razors, including delivery and associated packing costs are good, margins on "software" and liquid products are much better.
Our long term vision is to build a range of products which we believe will increase the value of Shavekit as a brand, increase the loyalty of our customers, further differentiate the offering and increase margins/basket sizes. We aim to launch 2 products a year.
Our investment target is £500k at a valuation of £3m.
(The 2015 valuation was £2.57m.)
We will be using the funds for
- Marketing - Our best performing channels are not maxed out.
- Product development - Investing in new products (Moisturiser - Post shave balm).
The company has an outstanding loan of £26,000, however none of the proceeds of investment are intended to be used to repay this.
We are a mass-market proposition. We are focusing on the quality of our products combined with excellent flexible service, Shavekit isn't constrained as a brand by wrapping what is already a simple, great product in faux-luxury. Shavekit is simple, unfussy and does not alienate the average guy.
Our target market is any man who spends money on bathroom supplies.
Characteristics of target market
Men's grooming in the UK is estimated to be worth £1bn and growing. The EU shaving market is estimated to be worth in excess of £2 billion.
We have proved that we can acquire customers in a cost effective way and retain them. Our key drivers (CPA and Churn) have improved since our last raise based on the average for the most recent 6 months against the same period before. Our financial model maps out the benefits and impact on revenue/growth of constantly improving the key drivers of the business (available on request).
We're now at a stage where we are growing organically by reinvesting income, but are cash constrained with the only barrier to faster growth being cash to invest in acquiring more customers.
This round of investment will allow us to speed up our growth and aim for a target of 20,000 members by December. Given the size of the market and opportunity, we believe that the potential for further growth is significant.
Our projections are based on our detailed financial model, underpinned by the historical averages of the key drivers of the business (CPA, churn, revenue per customer) and overheads.
Competition strategy
We view our main competitor as the existing shaving duopoly that currently has a 80%+ market share, almost entirely in physical retail. The overwhelming majority of our customers have never subscribed to a razor subscription before.
Future competition might come from either of the US shaving clubs launching in the UK. If they do eventually launch in the UK, we believe that Shavekit would be an obvious acquisition target.
The existing monopoly players have seen their market share be eaten up by the likes of Dollar Shave Club. With Unilever acquiring DSC for $1bn in cash, it's an exciting space to be in.
To access the Shavekit team biographies, including current ownership
To comply with financial regulations, we can only show full campaign details to registered users
Investing carries risks, including loss of capital and illiquidity. Please read our Risk Warning before investing.
Investing involves risks, including loss of capital, illiquidity, lack of dividends and dilution, and should be done only as part of a diversified portfolio. Please read the Risk Warnings before investing. Investments should only be made by investors who understand these risks. Tax treatment depends on individual circumstances and is subject to change in future.
This webpage has been approved as a financial promotion by Seedrs Limited ("Seedrs"), which is authorised and regulated by the Financial Conduct Authority. It is not intended to be a promotion of any individual investment opportunity and is not an offer to the public. The summary information provided about investment opportunities on this webpage is intended solely to demonstrate the types of investments available on the Seedrs platform, and any investment decision should be made on the basis of the full campaign. Full campaigns are available to investors who have become authorised to invest on the Seedrs platform. All investment activities take place within the United Kingdom, and any person resident outside the United Kingdom should ensure that they are not subject to any local regulations before investing.
Seedrs does not make investment recommendations to you. No communications from Seedrs, through this website or any other medium, should be construed as an investment recommendation. Further, nothing on this website shall be considered an offer to sell, or a solicitation of an offer to buy, any security to any person in any jurisdiction to whom or in which such offer, solicitation or sale is unlawful. Seedrs does not provide legal, financial or tax advice of any kind. If you have any questions with respect to legal, financial or tax matters relevant to your interactions with Seedrs, you should consult a professional adviser.
About Seedrs
Types of Equity
Investor help centre
Entrepreneur help centre
Referral Fee Terms
Secondary Market Terms
AutoInvest Terms
Email small
For information about how we use your personal data please see our Privacy Notice.
Seedrs Limited is authorised and regulated by the Financial Conduct Authority (No. 550317).
© Seedrs Limited 2020. All rights reserved. Seedrs is a registered European Community trademark (No. 008771537) and registered United States service mark (No. 85423072) of Seedrs Limited, a limited company registered in England and Wales (No. 06848016), with registered office at Churchill House, 142-146 Old Street, London EC1V 9BW, United Kingdom, VAT No. GB 208 3065 32. Seedrs.com is a website owned and operated by Seedrs Limited.
Email large
This business is eligible for SEIS relief - providing qualifying investors with income tax relief of 50% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.
This business is eligible for EIS relief - providing qualifying investors with income tax relief of 30% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.