Crua develops technically advanced & disruptive insulated tents or 'Cocoons' for multiple applications.
Business overview
| Location | Tralee, Ireland |
|---|---|
| Social media | |
| Website | www.cruaoutdoors.com |
| Sectors | Travel, Leisure & Sport Mixed Digital/Non-Digital Mixed B2B/B2C |
| Company number | 553249(Ireland) |
| Incorporation date | 26 Nov 2014 |
Investment summary
Business highlights
- Added over 16 new retail partners since the start of the year
- 2 new products planned to launch this Summer
- Gross Margin grew to 65% in 2021*
- Significant annual revenue growth since 2019*
Idea
Introduction
Thermo Tents Limited (T/A Crua Outdoors) designs and develops thermally, acoustically, and light insulating tents or 'Cocoons'. We incorporate cutting-edge material technology into our unique designs to solve real-life problems - making life on the go more comfortable.
With Crua, a camping trip or, thanks to our expanding range, any trip, can provide a restful night’s sleep. Our 20,000+ customers in 100+ countries agree.
And that’s exactly why Crua's unique design is disrupting traditional thinking.
'Live Tough. Sleep Easy.'
In 2021 we successfully launched 3 new products into our range. And we have 2 new products ready to launch this summer, with others in the pipeline. Our plan is to have a self-standing insulated Crua 'Cocoon' to fit inside most tents, awnings, vehicles etc. thus expanding our range of applications enormously.
We’ve also developed what we believe to be one of the world's first: an insulated and blast-resistant fabric structure for the exploration and production industry.
Substantial accomplishments to date
Infrastructure improvements:
✓ Integrated Brightpearl Enterprise software for improved demand planning, forecasting and controls
✓ Outsourced US fulfillment to eComm Boulevard to get closer to customers and enable growth
✓ Set out SOPs for process control and to maximise efficiency
Opportunities seized:
✓ Established over 20 new sales channels.
✓ In discussions with Spyder (an ABG Brand Group), to form a partnership.
✓ 3 product launches completed in 2021.
✓ Developing bespoke Augmented Reality technology.
Product validated:
✓ Superb service ratings.
✓ 'Excellent' rating on Trust Pilot.
✓ Member of the American Petroleum Institute committee, responsible for Blast Tent design.
✓ Products tested and approved by the Federal Bureau of Investigation in the USA.
Markets proven:
✓ 20,000+ customers in 100+ countries.
✓ Revenue growth maintained*.
✓ Insulated and 'blast-resistant' prototype shelters sold and delivered to Blue Chip customers from Oil and Gas.
Innovations protected:
✓ Trademarks registered in the USA
✓ Trademarks registered in the EU
Potential recognised:
✓ Enterprise Ireland High Potential Start-Up.
✓ Voted among 100 Hot Start-Ups by Sunday Business Post.
✓ Fourteen successful crowdfunding campaigns, including 8 successful product launches.
Foundations established:
✓ Management team and Board in place with significant and demonstrable track records in relevant disciplines, including eCommerce, NPIs, and finance.
*based on unaudited management accounts.
Monetisation strategy
As we are a product-based company, our revenues primarily come from the sale of Crua products, focusing on North America, the UK, and Europe. Our products are currently manufactured by third parties, although we have brought some prototyping in-house and we're planning to develop an R&D facility.
We increased our gross margin to over 65% in 2021, whilst maintaining growth in the business. This was a key step in our strategy aiming to reach positive EBITDA from 2024.
Modularity is a key part of our design strategy. As well as helping to offer a unique product range, this also encourages repeat customers and promotes higher lifetime value of our customers.
We primarily sell Direct to Consumer (online) through our own website, Amazon and New Product Introduction platforms such as Kickstarter and Indiegogo. However expanding into traditional retail is part of our growth strategy, and we already sell through 20+ online retail partners, most of which have been set up in 2022.
Use of proceeds
- Continued innovation and New Product Development
- Support brand development, particularly in North America as part of an aggressive growth plan beyond 2022 including ambassador/affiliate campaigns
- 3 key strategic positions identified - Head of Product, Brand Manager, and a Financial controller
- Setting up an in-house R&D function within the business to accelerate new product design and quicker route to market
- Improving the UX experience on our website, including the incorporation of personalisation through conversity.com which will allow us to offer a range of options to shoppers, in particular, when they are looking for an inner Cocoon to fit inside their tent, Awning, vehicle etc.
- Development of a range of tents as part of a partnership currently in discussion with Spyder (part of ABG Brand Group)
- Increase working capital to decrease out of stocks
Investor perks
Please note that any discounts, rewards and/or offers listed by a company in its campaign are subject to the terms and conditions applied by that company. It is the company’s responsibility to honour such discounts, rewards and/or offers and Seedrs does not take any responsibility for them.
Key Information
Outstanding ASA:
The Company has an outstanding Advanced Subscription Agreement (ASA). The key details of the ASA are as follows:
- Principal: £508, 973.91
- Conversion Trigger Events: (i) an Equity Fundraise of at least £1,500,000, (ii) a Change of control or (iii) an IPO
- Conversion price: the lower of (i) 20% discount to the valuation set by the Trigger Event or (ii) a valuation cap of £9,940,719.
- Longstop date: 21 August 2022. If a Trigger Event is not reached before then, conversion will occur at a share price of £15.28.
- Share class: Ordinary Shares
Please note, this ASA has not been factored into the pre-money valuation calculation of this campaign as it is not certain when conversion will occur. Upon conversion (either by way of Trigger Event or Longstop Date) there will be further dilution to existing shareholders.
Material Debt:
The Company has the following outstanding loans:
1. $185,000 (USD) loan from Wayflyer, an eCommerce financing platform. The loan is repaid via commission charged on Crua’s daily revenue which stands at 21.5% commission rate. The current balance of the loan stands at $80,574.55 (USD). The loan is to be repaid by 01/09/2022.
2. $71,280 (USD) financing loan from Shopify Capital. The loan is to be repaid via commission charged on Crua’s daily revenue through Shopify which stands at 17% remittance rate. The current balance outstanding is $45,707.93.
The funds raised from this investment round will not be used to repay these loans.
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