UK's Kidly crowdfunds to finance growth of own-label range

12 Apr '23

2 min read

Pic: KIDLY

Insights

Kidly Ltd, the popular online kids' retailer catering to children aged 0-5 years, has recently launched its first crowdfunding campaign on the Seedrs platform.
The campaign has already made significant progress, achieving 95 per cent of its £1 million investment target in just a few days, with 85 per cent of the target reached within the first two days.

Kidly Ltd, the online kids’ retailer for 0-5 years, has launched its first crowdfunding campaign, via the Seedrs platform. The campaign, which went live publicly this week, has already achieved 95 per cent of its £1 million investment target, with 85 per cent of this reached in the first two days.

The drive for investment comes as the online retailer continues to build on the success of its own-label collection, Kidly Label - which it launched in 2019. Steadily expanding, the range has grown from seven options at launch to 250+ today, spanning seven categories.

A strong year of product growth has seen the collection sell over 275,000 units in the past 12 months and account for 40 per cent of all units sold. Making up 25 per cent of the revenue mix, Kidly Label has amassed a loyal brand following that delivers Kidly’s highest customer repeat rates to date, the company said in a press release.

The move to accelerate Kidly Label’s development comes at a time when the brand is also looking to reduce its offering of third party brands, as its own-label typically achieves a 20 per cent higher gross margin. The new strategy places greater focus on stocking brands that truly complement the Kidly Label aesthetic.

“Our own brand, Kidly Label, has generated over £3 million in sales in the past twelve months alone, meaning the time is right to accelerate the growth of the collection and capitalise on its potential, as we know customer appetite is there,” said Kidly founder and CEO James Hart. “This focus on own-label growth, coupled with the rationalisation of our third-party brands, puts us on a steeper profit trajectory and gives us a great position to scale from.”

Since November 2022, Kidly Label has been sold on the Next platform and this crowdfund investment will allow Kidly to work with more strategic wholesale partners to raise brand awareness and re-enter international markets, like the US and Europe.

Fibre2Fashion News Desk (RR)

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