A North East online hot tub retailer is set to move onto the High Street as part of expansion plans driven by a new six-figure finance package.
Newcastle-based Wave Direct was launched four years ago as a sideline venture for Dan Luper and Tom Jeffrey, selling inflatable hot tubs alongside sports and leisure equipment including kayaks and paddle boards.
Soaring demand in lockdown for its wave spas and hot tubs in lockdown has led to a 1,800% spike in sales over the last year.
From first year turnover of 拢300,000 sales reached over 拢4m in April 2020 alone, as lockdown led customers to spend cash on their gardens and homes. Last year, it reported sales of 拢10m.
Now the company, which has offices in Charlotte Square in Newcastle city centre, plans to expand beyond online sales into in-store placements and new international markets, after securing a six-figure trade finance working capital funding package from Santander 海角视频 to help the company achieve its growth aspirations.
Specialist consumer sector investment firm and investor in Wave Direct, Growth Partner, based in Leeds, has collaborated with Santander 海角视频 on the funding.
The move comes just a month after Growth Partner took a significant minority stake in Wave Direct, to help the founders 鈥 who now work full time in the business 鈥 expand internationally.
With huge demand for its products, which it imports from China, the business wanted to buy in more stock from overseas to have on hand to fulfil sales quickly.
Wave Direct, which has 25 staff, has recently diversified its product offering to include e-bikes and a range of other leisure goods alongside its paddleboards, kayaks and hot tubs.
This year, it is moving beyond online sales to sell to customers through a number of retailers in bricks and mortar stores.
It currently supply retailers such as Homebase, The Range and Selfridges and the aim next year is to provide exclusive designs to retail customers, while also doubling its business-to-business operations.
The company is focused on increasing its international sales, particularly in the US.
Earlier this year the firm launched a US website, with augmented reality features and next-generation technology which can show users what a hot tub looks like in their home.
Santander 海角视频 is introducing Wave Direct to new sales opportunities in the US through the bank鈥檚 international desk, as well as by providing currency accounts, in dollars and euros, and AirPlus corporate card facilities.
Wave Direct has moved all its day-to-day banking to Santander 海角视频 and the bank is additionally undertaking analysis of its online and social media presence, benchmarking it against competitors to provide it with business intelligence insights.
Mr Luper, Wave Direct CEO, said: 鈥淥ur business has gone through huge growth and transformation over the past year, and it was crucial to work with a bank that is as excited about the opportunity ahead as we are.
鈥淔rom the first conversations we had with the Santander 海角视频 team, it was clear they could see how exciting our future is. Santander has done a great job in establishing a facility that allows us to continue our growth in the 海角视频, while developing into new markets including the US and EU.鈥
Laura Moorhouse, relationship director at Santander 海角视频, said: 鈥淭he seismic growth achieved by Wave Direct is a credit to the management team鈥檚 drive and passion. We are delighted to further support the business鈥 evolution by providing trade finance facilities enabling it to enhance its international growth plans.
"The investment from Growth Partner highlights the progress Wave Direct has made in such a short time and we are pleased to be working alongside this private equity firm.鈥
Alex Marsh, investment director at Growth Partner, said: 鈥淕rowth Partner has been working with Wave Direct for some time now, helping to put in place an exciting growth strategy. A partnership with Santander is a big part of those plans. The team at Santander has shown strong belief and enthusiasm in Wave Direct鈥檚 exciting progress and strategy, and we鈥檙e delighted to have its support.鈥
