AKT London

Idea

Introduction

AKT (pronounced “act”) was founded by two West End performers, Ed & Andy. Performing 8 shows a week, under hot lights, in the same costume night after night, meant they needed a deodorant that worked. With nothing else making the cut, they decided to invent a new deodorant that, like them, was BORN TO PERFORM.

2 years on, AKT has disrupted a stale deodorant market that hasn’t changed in years. Although sustainability and exceptional design is a key focus, AKT’s number 1 priority is that their formulations out-perform everyone else’s.

AKT is applied like a moisturiser to any part of the body where you need effective, all-day protection. Our Deo-Barrier Complex technology absorbs natural perspiration leaving you feeling dry and fresh all day – without breaking character. Ever.

With niche fragrances for all genders that are becoming a cult favourite, AKT’s next step is to scale as a premium bath & body brand with a fragrance focus, expanding the product range to improve our daily rituals.

Substantial accomplishments to date

In just 2 years AKT has shown excellent traction as a cult disruptor:

- Growth: £1.25M in Sales Revenue* with 85k units sold

- Subscriptions: 5000+ active subscribers (June 2022) generating an average of 43% of revenue*, with 231% growth YoY (Jan ‘21 - Jan ‘22)

- Raise to date: £500k from Angel Investors and VC Stonebridge (UK1) LLP

- Press: Ranked No.1 deodorant in Vogue, Esquire, Popsugar, GQ and the winner of Harper’s Bazaar’s “Best Deodorant” Beauty Award. Featured in numerous high level press articles and on ITV’s This Morning.

- Loyal Customers: seeded initially from the theatre industry, now with over 31k customers on our email list with an “excellent” 39% open rate

- Reviews: 3500+ 5* product reviews from our customers and high profile performers

- Product: Natural formulation. High end fragrances for all genders. 0% aluminium chlorohydrate. Doesn’t stain clothes. Use anywhere on the body.

- Sustainability: 100% Plastic free and recyclable packaging. Application for B-corp status in process. No air pollution (aerosols now bigger air polluter than all vehicles in UK)

- Retail partners include: StoreX at Soho Farmhouse, Earl of East, John Bell & Croyden & more.

- In conversations to launch with a global, high end, fitness studio chain. Expanding strategic, premium retail is a key plan for our future growth.

Monetisation strategy

AKT currently sells premium, natural deodorant via three core channels:

D2C: 96% of revenue* is from our ecommerce store. Meaning we connect directly with customers, nurture relationships and maximise margins.

Subscriptions: MRR from our 5000+ active subscriptions drives an average of 42% of total revenue/month.

Wholesale: 4% of revenue* currently comes from selling to our premium wholesale customers. As we look to the future we see huge potential in retail partnerships to drive brand awareness and increase sales.

Key insights:

- Margins: AKT has very strong product margins at an average of 80% - even at early stage volumes.

- Product: AKT deodorant is a premium offering at £19 and £16.15 for subscribers. We sit in line with our competitors like Malin + Goetz and Aesop, which gives us a great opportunity to expand our product range in a similar way.

- Markets: Our next key territory is the U.S in 2023. With our roots in theatre we foresee AKT being a “box office smash” on Broadway!

*Based on unaudited management accounts

Use of proceeds

With the foundations secure, AKT is ready to scale.

- Hiring: we plan to hire 4 key roles post-investment: Head of Growth, Financial Controller, Retail Manager and in-house Content Creator

- NPD: working with an innovative manufacturer in the UK to expand our product offering in the fragrance and bath & body space. Innovation, design, sustainability and efficacy are our "playbook."

- Subscriptions: partnering with one of the UK's best subscriptions companies to improve customer UX, analytics and subs marketing performance

- Partnerships: new 5ml plastic-free samples sizes will improve our offering to strategic partners such as high-end gyms and hotels

- Brand: We want to achieve cult status like Aesop and Le Labo. We’ve already set the scene in the luxury space, but now it’s time to steal the limelight!

- Marketing: we aim to reach new customers through TikTok, print campaigns, influencer marketing as well as facebook ads and google search, to achieve a stable CAC.