Huddled Group is seeking to acquire stock and fund expansion into more ecommerce channels through a new fundraise.
It’s received commitments for a proposed subscription of up to £730,000 in new shares, a retail offer via the WRAP platform, alongside a debt facility of up to £600,000.
The £600k loan agreement is split between founder, Martin Higginson, who has agreed to provide £300k, and 2 other private individuals.
The Manchester circular economy ecommerce group stated that management “and connected parties” had committed to subscribe for up to £370k, with existing institutional shareholders and one new shareholder placing “firm orders” for £360k.
The deals are expected to complete on Monday.
The cash raised from this will be used to increase its stock and working capital as well as funding the expansion into new online channels, such as KwikSales and marketplaces such as Amazon and Temu.
Last month it revealed that it was involved in early trials on deal sites, including HotUKDeals and Latest Deals, which were “very encouraging”.
One of these led to around 900 orders and £40k revenue in under 24 hours.
Last year Huddled entered into an agreement with THG Ingenuity and its THG Fulfil facilities to provide same-day delivery and create content through THG Studios.
READ MORE – Huddled partners with THG and secures £1.5million investment
“The move to our new highly-automated fulfilment partner was always going to be challenging, we are confident their automated solution will help us unlock, and hone, the potential in our business model,” said Martin Higginson, Executive Chairman of Huddled Group plc.
“The early signs across the new, additional channels to market is very encouraging, and whilst there is still much work to be done, we can clearly see that with more stock, and more channels to market we can begin to grow the business.”
