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The Funky Appliance Company

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We take popular domestic appliances and give them a funky twist.

110%
 - 
Funded 17 Jan 2022
£200,006 target
£229,998 from 165 investors
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Business overview

Location London, United Kingdom
Social media
Website www.funkyappliance.co
Sectors Home & Personal Mixed Digital/Non-Digital Mixed B2B/B2C
Company number 10248770
Incorporation date 23 Jun 2016
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Investment summary

Type Equity
Valuation (pre-money) £9.9M
Equity offered 2.19%
Tax relief

EIS

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Business highlights

  • Europe's largest SDA & Housewares distributor RKW represents us.
  • Leading UK retailers and independents now on board.
  • 3-year licence deal for housewares and cookware signed with RKW.
  • Significant distribution interest from USA, EUR, UAE and AUS/NZ.
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Key features

  • Secondary Market
  • Nominee investment min. £47.53 +

Idea

Introduction

After 3 years of trading, we believe the business is now poised to accelerate towards success and profitability in the next 12 months.

We started trading with our debut product the Funky Iron in December 2018 and in January 2021, we launched our new Funky Kettle and Funky Toaster and all three products have been widely acclaimed by professional reviewers in the industry and customers alike.

Having partnered with Europe's largest Small Domestic Appliance and Housewares distributor RKW and signed a new 3-year licence deal with them starting in January 2022 to go into Funky Housewares and Funky Cookware, we believe the business is now poised for fantastic growth.

Since inception, we have achieved significant progress. Relative to the budgets and resources of our competitors, we are very proud of where we have arrived at. To take the business to the next level, it is essential that we have the requisite funding to be able to achieve our goals.

Substantial accomplishments to date

Since April 2017, we have had six successful crowdfunding campaigns on Seedrs raising a total of £991,868.

We have already had four of the world's biggest appliance businesses approach us to show early interest about buying our business or partnering with us. Our products have been recognised for their excellent design and build quality. The Funky Iron was awarded the status "Good Housekeeping Approved" and in 2021 was given the title of "Best Iron for Large Households" by the Independent's "Indy Best" journalist. Two major appliance businesses want to collaborate with us on our Funky Microwave design.

Since launching our new Funky Kettle and Funky Toaster in Q1 2021, we have received the following titles:

“Best 4-Slice Toaster” – Ideal Home Magazine

“Best Matching Kettle and Toaster Set” – Ideal Home Magazine

“Number 1 Kettle and Toaster Set” – Real Homes Magazine

In November 2021, the Funky Toaster was awarded the status “Good Housekeeping Approved”.

The Independent awarded the Funky Toaster “Best Toaster Tall Bread” in their Indy Best selections.

We continue to receive quality approaches from distributors who are keen to range Funky products in their country and we are aiming for the first international distribution deals to begin in 2022. The first territories are likely to be the USA, AUS/NZ and the UAE.

The 'In The Press' page on our website https://www.funkyappliance.co/blogs/in-the-press will show how much press coverage we have achieved to date.

Monetisation strategy

We are direct to consumer (D2C) via our website where monthly revenues have passed £15k at full recommended retail price and margin and have averaged £9k a month in 2021 for the 10 months to October 2021*.

We are B2B via our distributor RKW of Stoke-on-Trent who have onboarded Robert Dyas (online), Currys (online), Studio (online), Dobbies Garden Centres (in store), Box (online), Comet (online), La Redoute (online) and more. In addition, a growing number of independent electrical retailers in the UK and Ireland are also ranging Funky products.

We have recently signed a 3-year licence deal with RKW which starts in January 2022 to go into Housewares and Cookware which will see us receive licensing royalties every quarter after RKW or international distributors take delivery of their Funky products. This licensing income is effectively profit which goes straight onto our bottom line. Funky will design the ranges and have full final approval before a product comes to market.

Use of proceeds

This round on Seedrs will aid cashflow in importing significant forward orders to fund freight and upfront VAT payments: £130,000 (43.33%)

The round will also enable us to advertise on national television for the first time as well as advertising through other select media: £100,000 (33.33%)

We will also look to appoint a new Operations Manager in January 2022 to take over the day to day running of the Funky office as well as having capital available for making upgrades to our website: £70,000 (23.33%)

*Source: Unaudited management accounts.

Key Information

Outstanding debt

The company has the following outstanding loans:

1. $115,027.10 loan from a Lead Investor and Board Member in October 2021 to fund the purchase of new stock for our own web sales with a delivery date of February 2022. This loan will be repaid no later than the end of May 2022 once the two large forward orders from RKW have been invoiced and the loan will attract 5% interest, with the total repayable of $120,778.45. This loan will not be repaid from the funds raised in this round, as it is planned to be repaid from the margin we make from the large forward orders which will be delivered in Q1 and Q2 2022.

2. £25,000 loan from a Lead Investor and Board Member with no interest or repayment date.

3. £18,500 loan from a Lead Investor and Board Member with no interest or repayment date.

4. £1,500 loan from an Investor and Board Member with no interest or repayment date.

The funds raised from this investment round will not be used to repay these loans.

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If you successfully purchase a share lot of this business, you will be granted access.

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Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

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 campaign for The Funky Appliance Company has been approved by Seedrs Limited (trading as Republic Europe) ("Republic Europe", "us" or "we"), as of 22 November 2021 as a financial promotion. Republic Europe is authorised and regulated by the Financial Conduct Authority with firm reference number 550317. In approving this campaign, Republic Europe has concluded that the information, taken as a whole, is "fair, clear and not misleading." This means that for factual statements we have reviewed evidence of their accuracy, and that for aspirational statements we believe they are phrased appropriately in light of their speculative nature. You should note that in the case of factual statements, the evidence we review is provided by the business, and we do not audit it, which means that we may not be able to identify forged or altered evidence. You should further note that in the case of aspirational statements, the nature of the type of businesses presented on the Republic Europe platform is such that they are likely to have high ambitions, and we may approve statements that convey those ambitions even where we do not believe, or we do not have a view on whether it is likely, that they will be fully realised. The pre-money valuation and investment sought in the campaign are those set by the business: they are not reviewed or established by us, and the valuation is not an independent view of what the business is worth. Given the nature and type of businesses presented on the Republic Europe platform, it is possible that the business has very little cash remaining prior to receiving this investment, and the investment sought may be necessary for the business's on-going existence.

Republic Europe does not make investment recommendations to you. No communications from Republic Europe, 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. Republic Europe 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 Republic Europe, you should consult a professional adviser.

Tax Relief (SEIS)

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.

Tax Relief (EIS)

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.

Valuation (pre-money)

Valuation rounded from £9,850,559

This is the fully-diluted pre-money valuation of the business (i.e. before the new investment comes in and including issued options and other equity interests). In contrast, the post-money valuation is based on inclusion of the new investment in the value.

It is calculated as the pre-money valuation plus the amount of new investment. e.g. If Company A is ascribed a pre-money valuation of £1,200,000 by prospective investors investing £300,000, its post-money valuation is £1,500,000.

The investee business is responsible for setting its own valuation, it has not been prescribed by Seedrs.

Pitch type

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Equity Offered

The equity offered is the percentage of the company’s shares being issued in return for the amount of investment raised.

When the amount raised is less than 100%, the equity offered is based on the target raise. Once the company has raised over 100% it is based on the total raised.

In some scenarios, entrepreneurs may accept additional direct investment after closing their Seedrs campaign. Provided this is within 6 months of the closing and on the same terms, we do not typically offer pre-emption rights on that extra investment (where you have the opportunity to invest again to maintain your percentage shareholding).

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Nominee investment

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Custodian

If you invest in this Campaign, Seedrs will act as Custodian rather than provide our standard nominee service. This is due to the fact that the business is not directly involved in the share sale and Seedrs will not benefit from any rights under a shareholder agreement. As a result, Seedrs will handle administrative tasks as we do normally, but you will not have information or voting rights, updates from the business, preemption on future fundraising, or ongoing support about business trading activity.

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Secondary market

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Direct investment

This is an option to invest and hold shares 'directly' in the company (rather than via the Nominee investment). This option is only available to those investing over the threshold amount, which is determined by the fundraising company.

If you choose to hold your shares directly, you will be responsible for any contractual or administrative arrangements with the company you are investing in.

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Payment options

We are not able to accept card payments for investments into this sector. You can pay for your investment by creating a bank transfer, using funds in your investment account or create a Pay by Bank payment. Your investment will only be completed once the funds have reached our account.

Business Involvement

This Campaign offers shares for sale in business that is not directly involved in this Campaign or the sale. As a result, the Campaign and post-investment experience, including investor rights, will differ from a business-led campaign on Seedrs. Most notably, the business will not engage with investors in the discussion forums both during and after the sale or provide any updates to investors.

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Payment options

We are not able to accept Pay by Bank payments for investments into this sector. You can pay for your investment with a card payment, by creating a bank transfer or by using funds in your investment account. Your investment will only be completed once the funds have reached our account.

Drawdowns

This campaign offers the ability to pay for an investment by drawdowns.

Security Token

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