DTC’s Daily Digest brings you the latest news on the world’s fastest growing direct-to-consumer and challenger brands. In today’s edition: Inc & Co acquires Laundrapp after administration announcement; TOTM seeks funding for global expansion; and Monzo on hiring spree & relaunching paid accounts.
Inc & Co acquires Laundrapp after administration announcement
Inc & Co Group has announced its acquisition of the operations of Laundrapp, a British on-demand laundry service.
This news comes after Laundrapp entered administration on Friday, wiping out all of its investors. More than £15m was pumped into the company during successive funding rounds but it ran into cash flow difficulties and was forced into administration after its investors declined to put up more capital.
Disrupting the laundry and dry cleaning industry has been the key to Laundrapp’s success to date. Laundrapp acquired Zipjet in 2019, increasing its marketing share considerably. The dry cleaning market continues to expand, with worldwide sales anticipated to reach USD$52bn by 2022, up from USD$12bn in 2017.
FRP Advisory, a corporate restructuring specialist appointed as administrator to Laundrapp, said in a statement that ““Laundrapp had suffered unsustainable cash flow pressures in recent months after the reserves of the business had been exhausted and further investment from existing shareholders was not forthcoming”.
TOTM seeks funding for global expansion
TOTM, a British business which sells ethical and eco-friendly period products, is seeking to raise £500,000 to accelerate its global growth. TOTM, which is based in Stratford-upon-Avon, has so far raised £323,990 on Crowdcube.
The company’s products are available in the likes of Tesco, Superdrug and Urban Outfitters while its fundraising campaign is scheduled to finish next month. TOTM raised £160,170 prior to the campaign launching, which has been included in the running total.
The company was established in 2016 and is led by managing director St John Pearce-Burke, chair Ruby Parmar, finance director Andrew Weight and non-executive director Kate Herbert.
Pearce-Burke said: “We’re an agile, purpose-led brand driving the conversation on Femcare sustainability at a time when consumers are petitioning for change. Our approach resonates with our belief-driven buyers who shop with their values and want brands to address important societal issues.”
Parmar added: “TOTM’s crowdfunding round provides an exciting opportunity to invest in a growing, ethical challenger brand, primed to build on our track record of disrupting the Femcare industry with our range of sustainable period care products and innovative multichannel growth strategy.”
Monzo on hiring spree & relaunching paid accounts
British digital bank Monzo plans to hire up to 500 people and forecasts it will get 5.5 million users this year, as it prepares to have another crack at charging some customers to turn a profit.
The loss-making firm has burned through cash to fuel growth and launch in the United States, but has had no problems raising capital and is valued at over £2bn.
The bank has run into problems, however, including the abrupt cancellation of a premium paid-for account in September after only a few months. It has also been hit by a flurry of complaints, including from customers who said they had been locked out of their accounts for no reason.
CEO, Tom Blomfield said Monzo planned to relaunch the paid-for accounts in the first quarter of this year, implementing lessons learned from complaints following its botched attempt in 2019.
“Our real focus is on monetisation,” he said. “We’re looking to drive revenue and do it in a way that’s transparent and fair.” Monzo wants to do that by lending more and rolling out paid-for services like the premium account.
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