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Our ambition is to shape the future of books by making reading more flexible, accessible and sustainable

183%
 - 
Funded 10 Dec 2021
£250,001 target
£559,630 from 217 investors
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Business overview

Location Gunnislake, United Kingdom
Social media
Website xigxag.co.uk
Sectors Entertainment Digital B2C
Company number 12102414
Incorporation date 15 Jul 2021
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Investment summary

Type Equity
Valuation (pre-money) £5M
Equity offered 8.36%
Tax relief

EIS

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Business highlights

  • ⚡ Over 11,000 app downloads since December 2020
  • ⚡ 12 publishers signed: Penguin, Hachette, HarperCollins, Faber
  • ⚡ Over 30k titles live on the platform
  • ⚡ 90% customer engagement with our ‘refer to text’ feature
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Key features

  • Secondary Market
  • Nominee investment min. £11.82 +

Idea

Introduction

At xigxag, we aim to lead the biggest-ever innovation in digital reading and shape the future of books.

We’ve set out to build the most advanced digital reading app in the market, with a proprietary listen-and-read x-book concept and market-first features for audiobooks.

Users get the audiobook and ebook in a single format without paying twice. They can listen to their favourite authors tell them a story in their own words and their own voice.

Our proprietary technology allows users to navigate the audiobook without interruption, but also see illustrations, search in the text, lookup words, take notes and share quotes. They can switch between reading and listening or read along.

Our app is live on Android and iOS. Over 9,000 users have downloaded our app since December 2020.

We have over 30,000 brilliant titles live on the app, including leading British authors like Sally Rooney, Richard Osman, Stephen Fry and Zadie Smith, with more being added every week.

Substantial accomplishments to date

We have assembled a highly experienced team supported by industry-leading advisors who have collective knowledge across media tech, D2C product development, e-commerce, digital marketing and publishing from ITV, Whitbread, McKinsey, Gelato, Deluxe Digital Media and Hachette.

This team is committed to building the most engaging digital reading app ever, with the potential to challenge the dominance of physical formats in the £100B book publishing industry, making reading more flexible, engaging, accessible and sustainable.

We launched our app on Android and iOS simultaneously in August 2020. Since December 2020, over 8,000 users have downloaded the app, with 6.5% purchase conversion and nearly 40% repeat purchase.

We have created a new audio format, the x-book, a fully integrated audiobook and ebook, with file extension .xxm. We successfully registered the trademark for the term x-book.

We have signed distribution agreements with twelve publishers, including Penguin Random House, Hachette, HarperCollins and Faber.

We've built one of the most advanced automated content processing platform in the industry with automatic QC and validation of metadata/media and four-hour time to publish.

85% of customers have used our 'killer app' feature - refer to text. This allows users to deepen their understanding of something they have just heard by referring briefly to the text.

We were awarded an Innovate UK Smart Grant in 2020.

Monetisation strategy

xigxag earns revenue primarily from the sale of digital audiobooks and x-books (audiobook and ebook in one). We offer a frictionless in-app purchase experience.

We have developed an innovative pricing strategy that encourages demand by offering consumers rewards for reading more without the pressure of a monthly subscription. Customers on average buy more books per month (1.92) as a result.

Longer-term, we have the ambition to create deeper learning experiences for users by cleverly integrating rich content overlays and links, superior to the best digital news apps. This has the potential to open up additional revenue streams (e.g., affiliate revenue and, potentially, advertising).

We are currently focused on the UK, but we are confident in our ability to scale globally at pace, once we nail our product and marketing mix. We have global publishing contracts, access to global content, a global cloud-based technology platform and global marketing channels.

Use of proceeds

xigxag has ambitious plans to drive further distinctiveness in our product offering and tech capabilities.

The primary use of funds will be to expand the capacity of the development team to deliver further experience innovation in the app and improve content processing automation via the application of machine learning.

Development is led by Mark Chaplin, an experienced CTO with over 25 years experience in digital media technology, and the former Director of Production Technology at ITV.

The funding will also accelerate customer acquisition and broaden marketing channels, following the launch of a new, SEO-optimised website, to grow the xigxag community.

Product and tech innovations combined with broader and more effective marketing and community activation will be focused to improve the cost of acquisition, boost conversion rates and accelerate repeat purchase across all channels.

xigxag is revolutionising digital 'reading' and shaping the future of books. Join us on the journey.

Key Information

Outstanding Debt

The company has the following outstanding loans:

- £37,500 Bounce Back Loan from Starling Bank at an interest rate of 2,5% per annum. The loan is to be repaid monthly by August 2030, covered by monthly revenue.
- £35,000 loan from an individual at an interest rate of 0% per annum. The loan is to be repaid on or before 31 August 2022.
- £84,000 loan from a director at an interest rate of 0% per annum. The loan is to be repaid only when the company has sufficient cash flow to accommodate repayment alongside continued re-investment in the business adequately.

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 xigxag has been approved by Seedrs Limited (trading as Republic Europe) ("Republic Europe", "us" or "we"), as of 11 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 £5,017,905

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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

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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

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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

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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

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Security Token

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