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Hewi

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Luxury recommerce, delivering the needed change in how the world shops for fashion.

107%
 - 
Funded 31 Mar 2022
£1,000,001 target
£1,174,650 from 228 investors
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Business overview

Location London, United Kingdom
Social media
Website hardlyeverwornit.com
Sectors Clothing & Accessories Digital Mixed B2B/B2C
Company number 07002732
Incorporation date 27 Aug 2009
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Investment summary

Type Equity
Valuation (pre-money) £7.8M
Equity offered 12.05%
Tax relief

EIS

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Business highlights

  • Over 200k registered users & visitors from 166 countries
  • Successful collaborations with Vogue, Sotheby's, Ecologi and GOSH
  • LTV:CAC ratio of 7:1 over an 8 year cohort
  • Experienced team with strong shareholder alignment
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Key features

  • Secondary Market
  • Seedrs nominee min. £10.32 +
  • Direct investment min. £20,000.00 +

Idea

Introduction

Hewi is a leading UK based luxury resale platform. Our mission is to be the destination for luxury recommerce. With over 200,000 registered members currently, we want to drive fashion forward for good. Sustainability is central to our business, advancing circular fashion, encouraging a move away from primary consumption and extending the life of beautiful products. We support societal and environmental causes through charitable and green partnerships.

We offer a VIP service to sellers from the worlds of fashion and film, helping them manage their wardrobes. We have collaborated with brands such as Sotheby's, creating its first ever luxury handbag and accessories auction; and partnered with Vogue to host a sale of items from the wardrobes of 23 supermodels including Bella & Gigi Hadid with proceeds going to charity.

With our 10 year anniversary in 2022, we launched our new tech platform built using best in class technology with the ability to significantly enhance UX/UI and conversion.

Substantial accomplishments to date

2012:

- Hardlyeverwornit (Hewi) founded by Sharon Wolter-Ferguson and her daughters; Natalya and Tatiana as a way to provide for the family and create a platform where luxury items could have an extended lifecycle and to change the way people consume

2013:

- Charity auction for UNICEF including a t-shirt belonging to Harry Styles

2014:

- Winners of the Santander Breakthrough 50 Award

2015:

- Passed £1m in total GMV

2018-9:

- Hewi Hermes Birkin featured in McMafia and McQueen gown worn by Villanelle in Killing Eve

2020:

- Tatiana Wolter-Ferguson becomes CEO introducing new growth strategy

- Become Diamond Partner with 1st Dibs

- Partnered with Sotheby's for their first ever Luxury Handbag and Accessories Auction

-Partnered with Great Ormond Street Hospital Children's Charity to host first ever digital event; Shop Wear Care Online, participating brands included Dior, Goop and Jimmy Choo

- Hewi partners with British Vogue as their first resale partner to host a charity sale of items from the wardrobes of 23 supermodels including Gigi & Bella Hadid with proceeds going to the NHS and NAACP

2021:

- £0.5m raised from existing and new investors by way of an ASA and direct equity investment (inc. Chair Designate £100k and COO £60k)

- Hewi features in The Telegraph and the FT How To Spend It

- Trademark granted for 'Hewi'

2022:

- New website launched in February 2022 marking a significant step from the previous platform which had been in place since the start of the business.

We achieved all of the above with only £2.3 million of investment raised in the 10 years since launch.

Monetisation strategy

Having been in the luxury resale market for many years, we have large number of sellers and buyers creating a virtuous 'network effect.' This longevity has also given Hewi a reputation for trust, reliability and quality, which is critical in our market.

We generate revenue from a commission on sale of the products, which is competitive.

Our 3 customer profiles:

1) VIP - A full service offering of all aspects of the sales experience on behalf our our clients.

2) P2P - Our peer-to-peer marketplace, where all items are pre-screened by Hewi

3) B2C - Commercial partner products, integrated through API, offering access to our digital marketplace

We focus on tiering and segmenting clients, while driving additional opportunity across our top percentiles. 3% of sellers generate 50% of revenue and 6.8% of buyers generate 50% of revenue.

Having been in business over a number of years, we have a substantial data set and the people and technology now to utilise this data and optimise performance.

Use of proceeds

We have transformed a family-business into a vibrant company with great people, passionate about full-circle luxury fashion. The achievements to date and digital platform established have been with minimal external investment. We are seeking new investment to drive growth forward, with resale growing 11 times faster than traditional retail and luxury resale forecast to grow 10-15% per annum over the next decade (McKinsey).

Proceeds will be used for two primary purposes.

We have an exciting tech roadmap to further enrich our user experience

1. Technology

- Enhancement of our proprietary e-commerce platform

- App development

- Automation of operational processes

Our marketing is highly effective. Our marketing payback is immediate and on the first order, with every £1 we spend on digital marketing generating an immediate return of £1.60.

2. Marketing

- Increase in digital marketing capability

- Further investment in brand and social media marketing

- Additional PR and offline marketing

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 and listed above. 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

Material Debt

The company has the following outstanding loans:

1. £182,800 Director’s loan at zero interest. The loan is to be repaid in monthly installments of £2,500 starting April 2022 and has no maturity date. Repayments can be withheld at the discretion of the company. 


2. £44,483.20 Bounce Back Loan at an interest rate of 2.5% per annum. The loan is to be repaid by August 2026.


3. £89,206 is owed to HMRC for delayed payments resulting from the Coronavirus pandemic. HMRC accepted their resolution to repay this debt in monthly instalments of £8,000, which started in October 2021.


4. £138,921 is owed to HMRC on account of volunteered errors. An internal review by the new CFO in 2020 uncovered some incorrect calculations regarding VAT and the company has proactively volunteered this to HMRC, corrected their financial controls and corrected their tax submissions. The company has proposed to HMRC to append this debt to the existing payment schedule outlined in point 3, and in doing so repay this debt in monthly instalments of £8,000.

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

Advanced Subscription Agreement converting in this round

The company has outstanding convertible investments structured as Advanced Subscription Agreements, or ASA's, totalling £380,000. These ASA's are converting in this round at a 25% discount to the share price. The shares from this conversion have been included in the pre-money valuation presented in the campaign, so that it is on a fully diluted basis.

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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.

Buy shares

Only shareholders can access this page

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

Buy shares

Only shareholders can access this page

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

Buy shares

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 £7,838,147

This is the fully-diluted pre-money valuation of the business (i.e. before the new investment comes in and including issued options and other equity interests). In contrast, the post-money valuation is based on inclusion of the new investment in the value.

It is calculated as the pre-money valuation plus the amount of new investment. e.g. If Company A is ascribed a pre-money valuation of £1,200,000 by prospective investors investing £300,000, its post-money valuation is £1,500,000.

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

Equity Offered

The equity offered is the percentage of the company’s shares being issued in return for the amount of investment raised.

When the amount raised is less than 100%, the equity offered is based on the target raise. Once the company has raised over 100% it is based on the total raised.

In some scenarios, entrepreneurs may accept additional direct investment after closing their Seedrs campaign. Provided this is within 6 months of the closing and on the same terms, we do not typically offer pre-emption rights on that extra investment (where you have the opportunity to invest again to maintain your percentage shareholding).

Learn more about investing and pre-emption rights.

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 is an option to invest and hold shares 'directly' in the company (rather than via the Seedrs Nominee). This option is only available to those investing over the threshold amount, which is determined by the fundraising company.

If you choose to hold your shares directly, you will be responsible for any contractual or administrative arrangements with the company you are investing in.

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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.

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None of the information in constitutes part of the campaign and it has not been approved or reviewed by Seedrs.

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