COAT is a digital-first paint company, re-defining the 'posh paint' experience for conscious customers.
Business overview
| Location | London, United Kingdom |
|---|---|
| Social media | |
| Website | coatpaints.com/ |
| Sectors | Home & Personal Mixed Digital/Non-Digital Mixed B2B/B2C |
| Company number | 12502151 |
| Incorporation date | 6 Mar 2020 |
Investment summary
Business highlights
- Over £9.3m in Sales since inception*
- UK's Fastest Growing Paint Company
- 77% Customer Repeat Order Rate
- Over £7m in funding from leading investors
Key features
Pitch
About the Campaign
True disruptors are hard to come by - but COAT is truly making waves in the massive old paint market.
We’ve reimagined paint for a digital generation - selling online, and cutting out stores to make the ‘posh paint’ experience simple, less expensive, and less wasteful for conscious customers.
Market Opportunity
The paint market is huge at over £2bn in the UK alone. It’s well established and stable, with plenty of room for multiple brands and products in different segments.
COAT is laser focused on the premium ‘posh paint’ segment - which we estimate at around £420m UK per year. Our paints are formulated with high-grade ingredients, but priced 10-20% less than heritage rivals.
As a digital native with a purposeful brand, we believe that COAT is in prime position to take market share in the 'posh paint' segment.
Traction & Key Accomplishment
Since launch, COAT has generated over £9.3m in Sales, growing consistently quarter-on-quarter with a CAGR of +60%.*
Simplifying colour selection, selling directly to our customers, and mixing paint freshly to order for less cost than competitors is striking a chord with homeowners and interior professionals alike.
* Based on unaudited management accounts
In a very short time, COAT has asserted itself as a real challenger to the heritage ‘posh paint’ brands of old - offering customers a contemporary, future-focused choice and a personal connection.
All this whilst gaining B Corp certification, Climate Positive status, and Positive Luxury accreditation for our sustainability advances.
With a database of over 250,000 customers, an Excellent NPS score of 77, and repeat rate of 77% - it’s clear that the sum of this new innovative approach really resonates, as customers vote with their feet (and wallets).
Since inception, COAT has raised over £7m from leading institutional investors who have all backed COAT as a true disruptor.
Team
We’re a capable and efficient core team of 11, working smart to keep overheads low.
Founders Rob and Rob have a killer combined skill set from premium brand, high-growth digital, and paint industry experience - with Rob G latterly working for one of the world's largest paint compaines.
On the management team is Kate Castanho (CFO) with finance experience, and Tony Stockil (Chairman) with experience in ecommerce and as Chairman of several high-growth online companies like Mindful Chef.
Business Model
COAT’s business model is beautifully simple - underpinned by smart operations.
We sell premium paint online, directly to consumers and interior professionals.
All paint is made to order with no waste, no coloured stock, with low fixed costs.
By selling direct, we retain strong margins to price competitively (-10-20% vs. competitors) and to reinvest in customer acquisition.
COAT generates a positive contribution margin after direct marketing costs, and marketing efficiency is growing over time.
Use of Funds
This funding round will allow COAT to maintain investment in marketing to attract new customers, whilst increasing profitability comes from the ever-growing pool of existing and repeat customers.
We’ll continue to develop our core digital platform, launching a loyalty programme and a dedicated ordering portal for professional buyers. We'll add sales and customer service roles to support.
The goal is for COAT to reach EBITDA breakeven in 12 months, with no further need for equity financing.
Investor Perks
Please note that any discounts, rewards and/or offers listed by a company in its campaign are subject to the terms and conditions applied by that company and listed above. It is the company’s responsibility to honour such discounts, rewards and/or offers and Seedrs does not take any responsibility for them.
Key Information
Share Classes
The Company has three classes of shares: Ordinary Shares of £0.00001 each, Preference Shares of £0.0001 each, and E Ordinary (not in issue yet). Holders of Ordinary and Preference Shares have voting rights.
Two of the direct investors in this round, Pembroke VCT and Bayes Investment are receiving Preference shares which are not currently EIS eligible.
Liquidation waterfall:
- On an exit and liquidation, holders of Preference Shares shall receive a 1x non-participating preference.
- On a liquidation, return of capital or exit, the proceeds will be distributed as follows:
(1) First, Preference Shareholders will receive a return equal to the higher of (i) 1x their initial investment back (or, if there are insufficient amounts to do so, an amount pro rata to their investment amount) or (ii) their share of the proceeds pro rata to the number of shares held;
(2) Second, Ordinary Shareholders and E Ordinary Shareholders will receive their share of the remaining proceeds pro rata to the number of shares held by them.
Currently, investors in the Seedrs round will be receiving Ordinary shares, in order to ensure they are EIS Eligible.
HOWEVER Please note that the Company is in the process of applying for HMRC advanced assurance so that the Preference Shares may be compatible with EIS relief. Investors will be updated if this is the case, but until this point, investors should assume they are receiving Ordinary shares.
Valuation
Pembroke VCT invested £2M as part of this round, in 2023. However, in line with Seedrs policy, investment received longer than 6 months prior cannot be reflected as investment on the campaign.
This investment has therefore been factored into the pre-money valuation instead.
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