The Funky Appliance Company

Idea

Introduction

We believe we have reached a pivotal moment in our history. In the 4 years we have traded to date, we have sold many thousands of products to customers all over the UK, with many using the word "love" in their reviews.

Having launched the Funky Iron in December 2018, the Funky Kettle and Funky Toaster in January 2021, we are now ready to launch our next product, the Funky Air Fryer which we intend to debut in the UK in September 2023. We expect this category will be huge for us.

We exhibited our products at The Inspired Home Show 2023 in Chicago in March where the response was incredible. Many retail buyers from the USA and Canada are interested in ordering our products when we have appointed a partner in that territory. We are holding off from doing so until we know we have the funding in place. We calculate that the USA & Canada markets combined are six times the size of the UK. We felt that our booth in Chicago was the talk of the hall with many industry professionals telling us that we are a breath of fresh air to the appliance industry.

Substantial accomplishments to date

Phil Knight, who was SVP Global Digital at SharkNinja appliances helping it grow to $1bn revenue joined our Management Team on the 12th April 2023 and immediately assumed the role of Global Digital Director for our business. He joins Peter Groom, Guy Weaver and CEO Joe Sillett as the four members of the Management Team who have a daily active involvement in building and growing the business.

Peter Groom our Global Sales Director who has vast experience of having helped build FlipVideo, bring the FitBit brand to Europe and launch the wireless bluetooth tracker Tile in Europe, now stands ready to go full-time with us after the end of this funding round.

Our products have received several prestigious titles from various industry publications and our Funky Toaster won "Best New Product SDA" at the ERT Awards. We have a growing and loyal customer base who recognise that our products are unique-looking and add real character and style to their kitchens and homes.

All of the capital we have raised to date has been via the Seedrs platform or by direct investments from individuals. We want this to continue as our business is very entrepreneurial and with a truly fantastic Management Team now in place, we all believe we are well placed to now convert the amazing opportunity we have ahead of us.

To date, multiple appliance businesses have shown interest in what we are doing and we feel confident that we are building towards an exciting trade exit in the future.

Monetisation strategy

For the time being, our core focus is on D2C and with Phil Knight bringing his wealth of digital experience to our business from April 2023, we believe that we will be able to grow our D2C channel very quickly. We have a website which performs strongly and has grown significantly year on year. We are working with experts to help accelerate the speed and size of growth and Phil will take a lead in this process.

Peter Groom has vast experience of building out retail, which he will do in the UK, USA & Canada, Europe and the rest of the world. As Global Sales Director, Peter will take the lead with all new retailers and is hugely excited about the journey ahead of us. Peter will look to work with big distributors, retailers and independents who share the passion for our Funky brand.

Use of proceeds

How the funds will eventually be spent will depend on the level of funding achieved in this round, however there are some key capital requirements in the next 6 to 9 months to help the business move forward swiftly:

1) Invest in the tooling of the new Funky Kettle (circa 5%)

2) Invest in the tooling of the new Funky Housewares range. (circa 5%) and then fund the opening minimum order for the Housewares range (circa 25%).

This would then enable us to sell a Funky Kitchen to customers: Funky Kettle and Funky Toaster, Funky Air Fryer and Funky Housewares.

3) A marketing budget to support our planned launch in the USA and Canada in Q1 2024. (circa 23%).

4) Confirm Peter Groom as full time Global Sales Director for 12 months following the funding round. (circa 12%)

5) Stock buyback from ex-distributor and working capital and advertising budget to drive growth of UK marketing and advertising. (circa 30%)

A portion of the investment reflected in this campaign was received by the Company in the 6 months prior to the launch of the investment round on Seedrs and the Company has started putting this to use.