Here we feature the latest business deals in Welsh business, with firms securing growth finance to expand and create new jobs.
Loopster
Loopster, the online platform for consumers to sell and buy second hand clothing, has secured a six-figure seed equity funding boost to support its expansion plans.
Investing alongside the Development Bank as the led investor, is business angel Jim Lewcock, who owns the internet-focused digital marketing and investment firm, Blue14, and experienced non-executive director and angel investor Kate Methuen-Ley.
The funding will help Loopster to further develop and commercialise its technology, enabling its platform to catalogue second-hand clothes faster.
The Newport-based company will also use the funding to recruit six members of staff, a process that is under way.
Extending the life of one garment through second-hand use by just nine months reduces its carbon and water footprint by 20 to 30%.
To sell to Loopster, customers order the Loopy Clear Out Bag and fill it up with unwanted clothes.
Loopster then hand-checks every donated item to ensure they of good quality.
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Parents are paid for items which make the grade which are then sold on at a fraction of new high street prices.
Clothes which do not pass the hand-check are returned to the seller, or if they agree, donated to the charity Traid.
Following the success of their children’s clothing service Loopster are now scaling up to include womenswear on its platform.
Founder and CEO Jane Fellner said: “People are starting to be more conscious of the importance of sustainable clothing. We’ve already seen a 50% increase in sales this financial year as consumers seek out more environmentally conscious fashion options.
“With the Welsh Government leading the charge to tackle the climate crisis we are thrilled to have the support of the Development Bank of Wales as our lead investor. Their equity finance is helping us grow our team and our platform further. We really hope as we enter the new normal, that one silver-lining will be creating a more sustainable future.”
Technology investment executive Alex Leigh who led the deal on behalf of Development Bank of Wales said: “Loopster has a really scalable hardware-software solution that addresses an important need within the babywear and children’s fashion sector.
"They’re helping clothes have an extra lease of life instead of ending up in landfill, which will have a positive environmental impact. We’re looking forward to working with the team and company as they grow and move in to other fashion retail markets.”
Blue 14 director and investor Jim Lewcock said: “This purposeful start-up is delivering value-innovation for its customers. I’m delighted to be supporting Loopster build a sustainable fashion brand that helps its customers save money and the planet. What’s not to like?”
Business Butler
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A Swansea start-up, which provides SMEs with expert business advice, has secured a six-figure investment to support its 海角视频-wide expansion plans.
Business Butler, founded by its chief executive Bhupinder Sidhu, has been backed with a £100,000 investment from angel investor Keith Price, in a deal giving him a 5% stake in the company.
Business Butler has developed a web-based business matching engine that connects small business users wit vetted local professionals across a range of disciplines from accountants to corporate lawyers. It is also developing the 海角视频’s first business advisory chatbot which is scheduled to launch next year. The chatbox will be capable of answering thousands of questions on a variety of subjects and giving impartial business advice for SMEs and start-ups.
Business Butler officially launch in Swansea and Cardiff in September, with Bristol to follow at the start of 2021.
Birmingham, Nottingham and Leicester will also join the Business Butler network in 2021. In total 200 towns and cities throughout the 海角视频 that have been identified as viable locations for Business Butler.
Users don’t pay for the service, with business experts paying £249 to join its panel. They then pay a £49 per month. Business Butler has to dates recruited 40 expert. It is projecting £2.5m revenues by 2022 and increasing to £7.3m by 2024. Job created are projected to 16 jobs at the start of 2021, 45 at the beginning of 2022 and 60 at the start of 2023.
Mr Sidhu:“I am delighted to receive the investment and support from someone as respected as Keith. We have managed to grow during these unprecedented trading conditions and our robust business model which is suited to the digital economy and focused on local ecosystems working together has been the reason behind this success.”
Mr Price, a respected business executive and investor, said: “I am delighted to have been given the opportunity to be involved and invest in Business Butler at the start of its journey. Now more than ever, businesses everywhere need as much help as they can get in navigating the complex road to profitable operations.”
“Business Butler is perfectly placed to help those businesses succeed and in so doing has established a commercial model destined to deliver significant returns.”
Codeherent
One of Wales’ most promising tech firms, Codeherent, has been boosted with a £400,000 funding round to support its expansion plans.
The Newport-based firm, which came out of the graduate entrepreneurship programme from the Alacrity Foundation, has been backed by original investors Wesley Clover, the Waterloo Foundation and angel investors, with the Development Bank of Wales as a new equity investor.
Codeherent had developed an intuitive software platform that enables businesses to manage their cloud infrastructure.
By centralising computer processing and storage facilities in data centres, cloud computing allows organisations to avoid the up-front costs associated with the acquisition of in-house IT infrastructure.
This latest investment will accelerate the development of Codeherent’s cloud visualisation and editing features.
Businesses using Codeherent’s platform can reduce cloud costs, accelerate cloud adoption, and improve IT security. The company was awarded initial investment after graduating from The Alacrity Foundation.
Covid-19, and the resulting global lockdown, has triggered an explosion in the use of cloud based applications such as Zoom. The cloud computing market is forecast to expand 17% this year.
However, Codeherent believes that only a small minority of businesses know how to maximise the potential of cloud because of a lack of shared knowledge about Infrastructure as Code (IaC). IaC is the management of computer infrastructure using software tools.
Codeherent managing director, Paul Sheehan, said: “With heightened emphasis on the criticality of excellent technology infrastructure, all businesses should be able to maximise the benefits of Infrastructure as Code to speed up software delivery, reduce costs, and improve product quality.
"Whether it is because of a skills gap, a lack of knowledge, or an inability to deploy it at scale, Infrastructure as Code needs to be made more accessible to a wider cross-section of the business community. We’re excited to launch our platform into that space.”
Dr Carl Griffiths, Development Bank of Wales’ technology seed fund manager said: “Our seed equity investments are helping to unlock the potential in exciting technology companies, with high-growth potential.
"At a time when businesses across the globe are digitally transforming to evolve and compete, Codeherent is providing an advanced cloud organisation and infrastructure solution.
“This equity investment marks our confidence in Codeherent’s ability to make a significant difference to the business world as it adopts new ways of working.”
WebBox
Web design and digital marketing agency, WebBox, has move to large offices in Cardiff accommodate expansion plans.
With a £400,000 funding package from NatWest, the firm has acquired a three times larger office building on Ocean Way in the capital than its previous rented offices in Penarth.
Founded by Will Roberts in 2008, WebBox develops websites and web apps, as well as managing digital marketing campaigns for a range of organisations including Fever-Tree, Twickenham Stadium, DS Smith Plc and NHS Wales.
After achieving 20% on year growth, he decided it was time for the business to relocate from its rented premises in Penarth to a larger site to facilitate further expansion . He has recruited three new starts since the move, bringing the total number of employees to 11.
The firm has continued to operate remotely through lockdown, servicing existing clients and winning new business.
Mr Roberts said: “After seven years working from the office in Penarth, we had finally outgrown it. With WebBox’s growing client base, it reached the point where we needed to employ more team members but had no space for them.
“The new office has plenty of space for us to continue growing and because we now own it, we have been able to make the space our own and inject some WebBox style. We look forward to returning to the office when it is safe for the team to do so.
“I’ve have worked with Matthew and the team at NatWest since I first established the agency and they have been incredibly supportive throughout the whole expansion.”
Business Loan Services (海角视频) introduced Mr Roberts to NatWest broker development Manager, Jo Kinsey, and NatWest relationship manager, Matthew Maunder.
Matthew Maunder, relationship manager at NatWest, said: “WebBox has grown considerably over the last 12 years and after outgrowing their rented office space, moving to an owner-occupied building seemed the ideal next step. With the fit-out now complete, we wish Will and the team every success in their new premises.”
Arch Drainage
A Valleys-based utilities business is set for significant expansion as it looks to double sales in the next two years.
Arch Drainage, which provides advanced diagnostics and drain repair services for businesses and local authorities across Wales and the South West, aims to boost its turnover to £3.9m by 2022.
The expansion plans will see the firm, based in Porth, create 12 new operations and back office roles in the next year, supported by a new £250,000 invoice finance facility provided by Lloyds Bank.
Counting several major contractors among its client base, the business wasa acquired in a management buyout in 2019. It subsequently rebranded as Arch Drainage and has plans to add a new depot to its existing sites.
Arch Drainage’s managing director Damian Tranter said: “Our business is entering a period of accelerated growth as we look to expand our offering in Wales and the M4 corridor.
“Having experienced sales director Dave Lewis join us recently, we’ve increased our new business pipeline and welcomed some key clients into our portfolio. With over £600,000 of new business invoiced since January, having the cashflow to invest in our growth is critical.
“The new facility from Lloyds Bank will give us the financial headroom to push on with those plans as we focus on the strengths of our core business and potentially add new satellite offices in Bristol and Swindon. In that respect, the team’s guidance and advice has been invaluable.”
Helena Warne, associate director at Lloyds Bank, said: “Having been by their side through recent growth, the ambition of the new management team at Arch is second to none. With that in mind, I’ve every confidence that they will continue not only to boost the business’ financial performance but also its contribution to employment in South Wales and beyond.
“Invoice finance is a great way of releasing both working and investment capital and is just one of the many ways in which we are helping Britain prosper.”
Flyform
Cardiff-based tech firm Flyform, a sales and service partner of the ServiceNow B2B cloud platform, has secured a significant six-figure investment to support its ambition of becoming £1bn turnover venture in the next decade.
Flyform, which currently employs 40 but plans to grow to 100 with a focus on graduate recruitment within the next year, has received growth capital investment from Lloyds Bank, in partnership with Izy Capital as lead advisor.
FlyForm works exclusively with US-based software firm ServiceNow – which provides a leading global cloud computing platform to help firms and organisations improve productivity and efficiency.
Founded in late 2015, FlyForm is led by co-founders Arron Davies, chief operating officer, and chief executive Philip Davies. The company has quickly expanded to work with clients across the 海角视频 and experienced a compound annual growth rate (CAGR) of 261%.
The company’s current clients span a variety of sectors, including government, financial services and healthcare. The company has not disclosed latest financial figures.
Mr Davies said: “We are beyond grateful to Lloyds Bank and the Izy Capital team for their help in achieving this massive opportunity. I look forward to working with my co-founder Arron and our growing team toward our vision of building Wales’ first global technology consultancy with £1bn in annual revenue.
"This injection of capital will help us accelerate even faster into the next level, as well as being a huge vote of confidence in our vision to continue supporting the local economy with hundreds of jobs in the near future.”
Last year ServiceNow generated revenues of $3.5bn. Earlier this year, FlyForm achieved ServiceNow elite partner status, the highest ranking level for a 海角视频-based partner. As ServiceNow targets global revenue of $10bn, FlyForm see significant potential for take up of the cloud software platform.
“FlyForm are a fantastic example of the vibrancy and the growth opportunity within the ServiceNow partner ecosystem,” said Seb Fitzjohn, vice president of alliance and channel ecosystem EMEA (Europe, the Middle East and Africa, at ServiceNow.
“A big part of ServiceNow’s strategy is to create the conditions for our partners to invest and scale, based on delivering customer success, and amazing experiences on the platform.”
Christopher Ryan, relationship manager at Lloyds Bank said: “We are delighted to support FlyForm with their scale objectives Their growth trajectory over the past several years has been remarkable and we very much look forward to a long-term relationship as digitisation is forced to the top of all enterprise agendas.”
David Rees, managing Partner at Izy Capital said: “We have been working with FlyForm for several years. They are an awesome bunch of guys as borne out by CAGR since 2016 of 261%. With the widescale migration to enterprise cloud digitisation and the support of the incredible ServiceNow ecosystem, our clear sense is this is just the beginning.”
RMS
Newport-based Retail Merchandising Services (RMS), which specialises in helping supermarkets to replenish shelves, has secured a six-figure funding boost from Lloyds. Bank.
The family-owned business has secured a £700,000 in the low interesting bearing Coronavirus Business Interruption Loan Scheme (CBILS).
CBILS, which is administered by the British Business Bank and now has more than 70 accredited lenders, is one the 海角视频 Government's flagship Covid-19 support initiative for SMEs.
With a national client base including major supermarkets and retailers such as Sainsbury’s, B&Q and John Lewis, RMS specialises in planning and delivering seasonal in-store projects and events, as well as new store openings.
This includes installing and staffing pop-up sales events, managing stock replenishment and driving customer engagement during exceptionally busy trading periods.
The business saw a significant increase in demand for its services in the grocery sector during the early weeks of the Covid-19 pandemic as supermarkets contended with exceptional customer demand and staff absences.
However, the temporary closure of non-essential retail stores meant the firm’s project work eventually slowed and led to the decision to furlough the majority of its staff on a phased basis.
With non-essential retailers now re-opening stores, the funding will provide the firm with the flexibility to retain jobs across the 海角视频 while mobilising teams regionally to implement new seasonal projects. Retail Merchandising Services can employ up to 1,000 people each year as result of seasonal demand.
The firm also set up a pop-up Tesco stores around the NHS Nightingale hospitals in England.
Its chief executive Daniel O' Toole, said: “We’ve worked with the 海角视频’s largest retailers consistently throughout our 15-year history so were well-positioned to support them through the initial weeks of the pandemic, which were akin to Christmas in terms of demand.
However, as seasonal changes to stores have been put on hold across the retail sector, we’ve had to manage our costs while protecting our specialist employees who might normally travel the length of the country to deliver a project. We also wanted to continue to support our seasonal workers who may have missed out on the benefits of other government schemes.
“The team at Lloyds Bank has helped us to arrive at a funding solution that meets those needs while giving us the cashflow to resource projects quickly as lockdown measures begin to ease.”
Chris Ryan, relationship manager at Lloyds Bank, said “The impact of Covid-19 on the retail sector has been polarised and Retail Merchandising Services has experienced both sides of the coin, while continuing to deliver important projects like those supporting NHS Nightingale staff.
“In whatever form it takes, we’re proud to be by the side of helping the national effort against Covid-19 and will continue to support them as they look to bounce back in the weeks and months ahead.”