LABFRESH

Idea

Introduction

OVERFUNDING UPDATE
We will keep the round open until €2m is reached. This is the amount we believe we can deploy in the coming 24 months without jeopardizing the core profitability of our business.

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LABFRESH is a textile science company disguised as a menswear brand. Washing something after just one wear is so 20th century. Our mission is to use the most innovative textile inventions to make life-proof menswear.

Thanks to our proprietary stain, odour and wrinkle-repellent fabrics our customers on average wear our shirts and t-shirts for 3.5 days between washes. Because in our opinion the only way to clean up the fashion industry is to develop garments that are more durable and can stay fresh and clean for many days.And when we do it with 97% recycled fibres that only makes the equation even better for your wallet and the planet.

*based on unaudited management accounts

Substantial accomplishments to date

1.) EBITDA-profitable and revenue growth of 43% YoY in 2022
Profitability is the holy grail for direct-to-consumer brands. Especially in these times when margins are under pressure. We are fortunate to have been focused on profitability in due time, and in a way that enables us to grow revenue by more than 40%.

2.) Developing our generation 4 fabrics, reaching a level of 97% recycled fibres without compromising on stain, odour and wrinkle repellency.

This is currently only for classic shirts, pants, and undershirts. By 2025 we pledge to use recycled or bio-based fibres in 97% of our collection.

3.) Building one of the strongest communities in menswear:

- 103,000 customers in 80+ countries
- 57% of 2022 revenue from repeat orders
- Financed by our customers since day 1 - no banks or institutional investors. We have done this via pre-paid pre-orders (to finance new product launches) and crowd loans (to build the Amsterdam and Copenhagen flagship stores).

Monetisation strategy

Direct-To-Consumer omnichannel:
Pure players are having a hard time reaching profitability. LABFRESH is digital-first, but we utilize our own retail stores in Copenhagen and Amsterdam to increase new customer conversion and reach an audience that just doesn’t like ordering new apparel online when they don’t know their fits and sizing. In 2022 78% of revenue was online.

Vertically integrated

As a vertically integrated brand, we will continue to develop our own fabrics to keep our quality and margins high. The gross margin in 2022 was 68%. At €99 we do not make cheap shirts. But considering the technology and that all shirt fabrics are made in Portugal and Italy we believe this is solid pricing.

For more information on our business plan and pitch, download our pitch deck in the "Documents" section

Use of proceeds

1.) Increase fabric inventory levels

For 6 years we have had long delivery times and frequent sell-outs. Post-funding we plan to increase raw materials inventory with the aim to reduce production costs from 5 months to 5 weeks, enabling us to introduce a true Never-Out-Of-Stock program.

2.) Scale Germany & the UK

With €1.7m accumulated revenue in Germany and UK, we think it is time to give it a real go. Phase 1 includes a localised website, marketing, customer service, shipping partners, payment options, and email flows. Only when scalability and profitability have been proven online we will venture into retail.

3.) Retail expansion

Our flagship stores in Copenhagen and Amsterdam have become profitability and loyalty drivers. Therefore we plan to utilize the funding to open more retail stores. We are confident we can double our retail footprint without increasing HQ overhead. We aim to scale ecom along with retail so that retail sales remain at a maximum of 40% of total revenue.