Kelly Hoppen Launches £1.1 million Crowdfunding Raise

12/05/2015

The Board of Kelly Hoppen London today launched a £1.1 million crowdfunding raise through Crowdcube

Kelly Hoppen Close Crop May 15

Investors are being offered the opportunity to invest in Kelly Hoppen London, the online affordable luxury homewares retail business focused on products conceived by Kelly Hoppen MBE, the award-winning English interior designer, author and businesswoman.

Kelly Hoppen, having run a successful product and interior design business for many years, formed a new business, Kelly Hoppen London, with three other shareholders to sell her range of beautifully designed products online and in store. The company began trading in January 2014 at www.kellyhoppen.com.  Its ranges currently include: furniture, bed linen, candles and fragrances, soft furnishings, tableware and home jewellery – the term used for items such as vases and decorative pieces.  

The UK homewares market is estimated by Verdict Research to be worth approximately £11 billion and premium homewares makes up a material part of this market, with a potential customer base for Kelly Hoppen London in the UK alone of circa 13 million ABC1 residential addresses according to Media Week.

From launch in January 2014 to February 2015, the website attracted circa 1 million visits which led to over 5,000 customers purchasing Kelly Hoppen London products (with 30% of those customers purchasing on more than one occasion). 30% of site visits were from overseas (with no overseas marketing). 97% of customers were satisfied with the products and service according to the company’s Feefo feedback. 35,000 people have signed up to email marketing. Sales for Q1 2015 were over £500,000 compared to £125,000 in Q1 2014. The business has created 27 jobs and expects this to rise to 45 within the next three years. In October 2014, Kelly Hoppen London launched its first trial pop-up stores in mid-mall locations in Bluewater and Westfield London.

The Kelly Hoppen board is made up of individuals with successful track records. Kelly is the Creative Director and the other board members and shareholders are John Gardiner (Managing Director), Nick Young (Brand and Marketing Director), Paul Althasen (Non Executive Director) and Jamie Robertson (IT Director and General Manager).  Each has previously formed start-ups and has grown them into substantial businesses before selling and realising significant shareholder value; these include marketing, retail, telecoms and distribution businesses.

Since the conception of the business in early 2013, the founding shareholders have invested approximately £2.1 million of share capital, and £780,000 of loan notes, to prove the business model prior to seeking external funding. The financial plan shows profits from year 2 onwards which will support the global expansion of the business from there on.

The company is now seeking £1.1 million, through Crowdcube, for 11% of the company’s equity to support its initial growth plan with these funds being used to support significant additional marketing. Investors will also benefit from a 10% discount off Kelly Hoppen London products for an investment of £1,000 or more.

The company aims to generate substantial returns for shareholders within five to ten years, although will remain flexible in order to maximise value. Similarly the Board will consider a trade sale or stock market listing depending on the business and market conditions.

On the decision to use crowdfunding, Kelly Hoppen, Creative Director, said:

“The internet has changed the dynamics of the way that business gets done and now crowd funding, and Crowdcube in particular, enables exciting new companies to source capital to fund growth. Kelly Hoppen London is a retail product business with four major shareholders and it seemed natural to invite further investors, many of whom will be our customers or potential customers, to be part of our journey for as little as £10.” 

Commenting on the investment opportunity, John Gardiner, Managing Director, added:

“Over the last year or so we have proved that there is a demand for our products, tested the business model, built a platform that is scalable and robust, curated a portfolio of gorgeous affordable luxury products and attracted a good customer base. Since the start of this year we have increased our customer base by an average of 9% month on month. Our aim now is to make Kelly Hoppen London a premium global brand by fully leveraging Kelly’s widely recognised name as well as her position as one of the world’s leading, trend setting designers. There is, we believe, a clear gap in the market for ‘mass-pirational’ homewares and this fundraising will help us to exploit this.”

The crowdfunding opportunity closes on Friday 26 June, potential investors should visit:  www.crowdcube.com/kellyhoppenlondon

A short video of Kelly Hoppen discussing the opportunity can be viewed at:  https://vimeo.com/127472237.

 

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For media enquiries and publication quality photographs:

Redleaf Communications                                   t:  +44 (0) 20 7382 4747

Emma Kane/Rebecca Sanders-Hewett              e:  kellyhoppen@redleafpr.com

 

Notes to Editors

About Kelly Hoppen London

All Kelly Hoppen London products are designed and chosen by Kelly and her team and she aims to bring her style and design philosophy to consumers around the world through high quality, beautiful products, at affordable prices, all wonderfully presented online or in-store.

 

About the Management Team

Kelly Hoppen MBE – Creative Director

Kelly is a globally renowned interior designer and has been creating stunning interiors for the homes, yachts and jets of wealthy and famous individuals, as well as commercial clients, for many years. Kelly is an award winning designer and in 2009 she was received an MBE from the Queen for services to interior design.  Kelly is an ambassador for the Prince’s Trust and for the Government’s GREAT Britain campaign.

John Gardiner – Managing Director

John has founded a number of successful companies including: Twinchoice Limited, a distribution company, which he grew to a turnover of £25 million+ before merging with Banner Telecom to form Banner Telecom group plc and subsequently, in 2000, selling to European Telecom for over £15 million. John then co-founded epay Limited and took it to be the market leader in mobile top-up in the UK, Australia and Malaysia. John sold epay Ltd. to Euronet Worldwide Inc. (NASDAQ: EEFT) in February 2003, for $76 million USD.

Paul Althasen – Non-Executive Director

Paul co-founded epay Ltd. and following its sale to Euronet Worldwide Inc. in 2003, he joined the board of Euronet Worldwide Inc. where he still holds a non-executive role.  Prior to this, Paul co-founded MPC Mobile Phone Centre, which he sold to Vodafone in 1997. He is currently a director of Evolve Telecom, Lodwick Homes and holds a number of other UK Directorships.

Nick Young - Brand & Marketing Director

Nick co-founded Lowe Direct, a digital and direct marketing agency in 1996. Within four years Nick grew the business to be one of the top UK Agencies and in 2000 Nick sold the business to IPG. In 2005, Nick launched another Agency called Personal. Nick is a Non-Executive Chairman of Suburbia; a luxury brands and high fashion Advertising and Digital Agency whose clients include H+M, LK Bennett, Longchamp, Bennetton, Loewe and Diesel.

Jamie Robertson – IT Director and General Manager

Jamie worked in IT roles with investment banks such as JPMorgan before joining epay shortly after its formation as Head of IT Projects. He was later appointed as a director. Subsequent to epay he undertook consultancy roles at Standard Chartered and VocaLink.

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