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CLUBZERØ

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A product and infrastructure system designed to eliminate landfill packaging from the F&B industry.

168%
 - 
Funded 17 Jan 2022
£225,000 target
£380,356 from 793 investors
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Business overview

Location London, United Kingdom
Social media
Website www.clubzero.co
Sectors Food & Beverage Mixed Digital/Non-Digital B2B
Company number 09693923
Incorporation date 1 Aug 2018
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Investment summary

Type Equity
Valuation (pre-money) £8.4M
Equity offered 4.33%
Share price £0.61
Tax relief

EIS

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Business highlights

  • 800,000+ orders completed, 1.6M plastic items saved from landfill
  • Backed by Seedcamp, Atomico & Angels ex-Tesla & Impossible Foods
  • Clients include JustEat, Nestle, Starbucks and McDonalds
  • Turnover increased by 537% in 2020 vs 2019*
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Key features

  • Secondary Market
  • Seedrs nominee min. £10.37 +
  • Pay by Bank payments not accepted
  • Idea
  • Key Information
  • Team
  • Updates
  • Investors 793
  • Discussion
  • Documents

Idea

Introduction

Award-winning CLUBZERØ founded by Safia Qureshi has built a product line-up and infrastructure system to eliminate landfill-packaging from food and beverage (in-store, takeaway & delivery). With 800,000+ orders to date, we are growing and scaling to a city near you. Accelerate this zero waste winner and own a part of the business, with existing investors including Seedcamp and Atomico and US investors R/GA Ventures and super angels.

Launched in London and Palo Alto, CLUBZERØ is a patent-pending (worldwide) reusable packaging system designed for takeaway food and beverage. CLUBZERØ offers a convenient and cost-efficient alternative to disposable packaging. We are working towards a zero-waste future, reducing waste by a factor of 250 and CO2 by 50% (when compared to disposable packaging, as shown in our 2018, Lifecycle Assessment Report**.)

We are operating in the global reusable food packaging market, which is projected to grow to $29.32bn in 2027. With growing regulatory reforms happening across the EU thanks to the Directive on Single-Use Plastics, there is increasing momentum for cities, brands and retailers to procure comprehensive reusable packaging systems.

*Based on unaudited management accounts
**Find further information from our life cycle assessment report here: https://www.clubzero.co/news/sustainability-report

Substantial Accomplishments to Date

Proven execution in both London and Palo Alto across in-store, takeaway and delivery for clients including Just Eat, Nestle, Camden Council, King’s Cross, Google, catering companies Baxter Storey and CH&Co and Next-Gen Consortium brands (Starbucks, McDonald's and Coca-Cola) and more.

We have excellent KPIs to date, with a 95% return rate on average across both food and beverage reusable product lines.

We recently launched our city cluster in London's Kings Cross in partnership with Argent LLP with Just Eat and First Mile managing distribution of zero waste orders across in-store, takeaway and delivery.

Our patent pending reuse system is designed for multi-city operations, with established packaging standards and operating expertise to enable rapid city expansion, laying out a path to potential growth.

We’ve received prestigious awards and patronage including ‘Winner of New Plastics Economy’ by the Ellen MacArthur Foundation in 2017, ‘Best UX Design’ by Fast Company in 2018 and ‘NextGen Cup Challenge’ by IDEO in 2019.

Monetisation Strategy

CLUBZERØ provides an easy alternative to single-use for hosts (restaurants and cafes) and consumers.

CLUBZERØ works with host restaurants and cafes, brands and retailers as part of a monthly service agreement, with customers signing up to a fixed monthly volume of reusable food or beverage containers.

CLUBZERØ's entire service is provided on a price per use, with pricing starting at 17p per beverage container used and/or 30p per food container used.

Financial summary*:

CLUBZERØ started trading in August 2018 with customers across Business. Our time prior to this was spent on establishing our IP involving world wide patents(across 7 territories), trademarks in the UK and US, and copyrights across our product-lines and infrastructure system.

Our 2019 revenues were made up of sales from key customers including Cushman & Wakefield, John Lewis & Partners, Baxter Storey (contract caterers) for VISA, Next Gen Cup Challenge including Google campus.
In 2020 we were expecting significant growth, building on our 2019 revenue, much of which were long term contracts with Business customers. However, with the pandemic our growth was impacted and our revenues were £171,890.60 and Accounts Receivable £15,830.28.

In 2021 we continued to invest in product and technology. This involved building out our platform, apps for consumers, hosts and operators whilst getting feedback from our customers. We launched the retail and delivery arm in September 2021 with customers including Nestle, Just Eat, King's Cross (Argent), CH&Co (contract caterer for University College London) , Camden Council, Petersham Nurseries, Kaleido, Notes Coffee and Hidden Curry.

*Based on unaudited management accounts

Use of Proceeds

Funds generated from the crowdfund will be used to fund expansion of CLUBZERØ in London, driving key volumes per month and to drive an increase in host locations through partnerships.

This expansion is broken across three key areas of the business:

1. Key Hires:
Senior Product Manager
Business Development Manager
User Growth Manager

2. Product
Improve consumer UX
Further develop open standard for reusable packaging and yellow drop point boxes

3. Growth:
Launch next wave of London urban clusters
Build partnerships with estate owners and brand hosts

Key Information

Advance Subscription Agreement converting in this round

Two investors in this round have participated for a total of £95,547.50 (USD100,000 + GBP10,000) on an Advanced Subscription Agreement in October and November 2021. This ASA will convert in this round at a 20% discount. The shares from this investment have been included in the pre-money valuation.

Outstanding debt

The company has the following outstanding loans:

1. £5,000 director loan outstanding. The loan is not documented, however it is referenced in the Company's accounts and no interest is accruing on the amounts owed.
2. £29,000 Bounce Back Loan at an interest rate of 2.5% per annum.
3. Due to the coronavirus pandemic, has a PAYE arrears payment plan with HMRC and is paying this off in accordance with the payment plan.

The funds raised from this investment round will not be used to repay these loans.

Legal dispute

The company is in the process of responding to the following legal disputes:

1. A challenge to one of its registered trademarks. The company has responded to the claim and contested the challenge. The company is currently waiting for a response from the claimant. The company does not expect the outcome of the dispute to have a material bearing on the business of the company.

2. A challenge from a consultant over a success-based commission in respect of an unsuccessful grant application. The company has received further correspondence from the consultant to which the company is responding to confirm that no amounts are owed or payable to the consultant on the basis that the application did not succeed.

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Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

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Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

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Investing carries risks, including loss of capital and illiquidity. Please read our Risk Warning before investing.

Investing involves risks, including loss of capital, illiquidity, lack of dividends and dilution, and should be done only as part of a diversified portfolio. Please read the Risk Warnings before investing. Investments should only be made by investors who understand these risks. Tax treatment depends on individual circumstances and is subject to change in future.

This webpage has been approved as a financial promotion by Seedrs Limited ("Seedrs"), which is authorised and regulated by the Financial Conduct Authority. It is not intended to be a promotion of any individual investment opportunity and is not an offer to the public. The summary information provided about investment opportunities on this webpage is intended solely to demonstrate the types of investments available on the Seedrs platform, and any investment decision should be made on the basis of the full campaign. Full campaigns are available to investors who have become authorised to invest on the Seedrs platform. All investment activities take place within the United Kingdom, and any person resident outside the United Kingdom should ensure that they are not subject to any local regulations before investing.

Seedrs does not make investment recommendations to you. No communications from Seedrs, through this website or any other medium, should be construed as an investment recommendation. Further, nothing on this website shall be considered an offer to sell, or a solicitation of an offer to buy, any security to any person in any jurisdiction to whom or in which such offer, solicitation or sale is unlawful. Seedrs does not provide legal, financial or tax advice of any kind. If you have any questions with respect to legal, financial or tax matters relevant to your interactions with Seedrs, you should consult a professional adviser.

Tax Relief (SEIS)

This business is eligible for SEIS relief - providing qualifying investors with income tax relief of 50% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Tax Relief (EIS)

This business is eligible for EIS relief - providing qualifying investors with income tax relief of 30% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Valuation (pre-money)

Valuation rounded from £8,370,075

Pitch type

There are 5 types of investment pitch available on Seedrs.

  • Equity
  • Convertible
  • Fund
  • Cohort
  • Secondary

Investing in a regular equity campaign is the simplest and most common way to invest in a startup. You decide which business you want to invest in, and if the campaign hits its funding target then you will become one of their shareholders. As the company becomes more valuable, so do your shares; allowing you the opportunity to share in the future success of the business.

Learn more about pitch type on Seedrs

Seedrs nominee

This shows if you are able to choose, when making an investment, that you be represented by, and your shareholding be managed by, the Seedrs nominee.

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Custodian

If you invest in this Campaign, Seedrs will act as Custodian rather than provide our standard nominee service. This is due to the fact that the business is not directly involved in the share sale and Seedrs will not benefit from any rights under a shareholder agreement. As a result, Seedrs will handle administrative tasks as we do normally, but you will not have information or voting rights, updates from the business, preemption on future fundraising, or ongoing support about business trading activity.

Learn more about Custodian here

Secondary market

This shows if the business has opted-in or opted-out of allowing its shares to be bought and sold on the secondary market.

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Direct investment

This shareholding type is available and the minimum investment required to select it.

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Payment options

We are not able to accept card payments for investments into this sector. You can pay for your investment by creating a bank transfer, using funds in your investment account or create a Pay by Bank payment. Your investment will only be completed once the funds have reached our account.

Business Involvement

This Campaign offers shares for sale in business that is not directly involved in this Campaign or the sale. As a result, the Campaign and post-investment experience, including investor rights, will differ from a business-led campaign on Seedrs. Most notably, the business will not engage with investors in the discussion forums both during and after the sale or provide any updates to investors.

Learn more here

Payment options

We are not able to accept Pay by Bank payments for investments into this sector. You can pay for your investment with a card payment, by creating a bank transfer or by using funds in your investment account. Your investment will only be completed once the funds have reached our account.

Drawdowns

This campaign offers the ability to pay for an investment by drawdowns.