Ecommerce group, Huddled, says it’s accelerating its growth plans, following two major announcements this morning.
Firstly it has entered into an agreement with THG Ingenuity and secondly it’s received a £1.5m investment proposal from Shard Capital Partners.
The deal with THG Ingenuity and its THG Fulfil facilities will enable the group to take orders up to 1am for same-day delivery. Huddled said that it anticipated that this would improve its marketing conversion rate as well as customer satisfaction.
Furthermore, the group said that the relationship opened up the opportunity of using THG Studios to create ecommerce solutions, with AI technology and live presenters.
It expected this to be fully operational by the start of Q4, this year.
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“This partnership represents a step-change in our ability to deliver circular economy solutions at scale,” explained Martin Higginson, Executive Chairman of Huddled Group plc.
“THG Ingenuity’s fulfilment capabilities rival Amazon’s – something we’ve aspired to since we started this business. The ability to process orders until 1am for same-day delivery is a dream for any e-commerce retailer.
Huddled added that it did not expect the costs of warehousing, fulfilment and postage to be “materially different” following the move to THG Ingenuity.
“… with the advantage of quicker turnaround times, highly-scalable capacity and proximity to potential suppliers of stock, we believe this is the right decision for the Company,” it said in a statement to the Stock Exchange.
“Partnering with Huddled is a testament to THG Fulfil’s world-class fulfilment and courier management solutions. Our collaboration will empower Huddled to deliver a truly market-leading customer experience, optimising their operations whilst leveraging our industry-leading capabilities,” added Tom Killeen, COO, THG Ingenuity.
“In addition, their approach to offering sustainable solutions to surplus stock allows us to talk to our clients and offer them a solution to an age-old problem. A solution that reduces waste and maximises efficiency. This is about more than just logistics; it’s about leveraging cutting-edge technology to unlock tangible commercial advantages and deliver unparalleled speed and precision.”
The second announcement was that it’s received a proposal for equity funding from Shard Capital Partners LLP for £1.5m at a price of 3.2 pence per Ordinary Share.
The Board said that it had accepted the terms, which would be met by the issue of 46,875,000 new Ordinary Shares at a price of 3.2 pence per Ordinary Share.
That’s despite the company stating over previous years that it didn’t need to raise new cash. It explained that the approach combined with the THG Ingenuity partnership came “exactly the right time, allowing us not only to strengthen our balance sheet, but also enable the move to a world-class logistics service.”
Higginson continued:
“We knew to fulfil this vision, and accelerate our growth plans we would need more capital, and to be approached by Shard Capital Partners LLP regarding a potential investment from a major institutional investor came at exactly the right time. Their belief in our mission is a testament to our model and the growth we have shown to date, as well as the growth potential this THG Ingenuity deal will unlock. To take this money into the Company at the current market price demonstrates confidence in both the business and its potential.”
Huddled buys surplus stock from manufacturers and retailers and then sells it online at a lower price.
