Building a mobile network for 2023 with no carbon footprint, no roaming fees and 4x better signal.
- 12x revenue growth since 2021 Pre-Seed*
- 3,500+ live SIMs
- 80+ NPS score, ~5x the average of the UK’s big networks
- Rated excellent (4.6/5) on Trustpilot & UK’s most ethical network
Your phone has changed a lot in the last few decades. But mobile networks are still stuck in the dark ages.
You’ve been putting up with terrible customer support, annual price hikes, and crazy roaming charges for far too long.
9 million of you are unhappy with your signal in the UK.
And thanks to old technology built in the 90s, you’re still phoning call centres to make the simplest of changes to your plan.
And that’s why mobile networks are trusted even less than banks (yeh, we know!).
We knew there had to be a better way. Which is why we’re building a new type of network, using better tech to transform your user experience.
A better way also means a more sustainable way. By 2040, technology is set to be 14% of global emissions. We need to act now, which is why we baked sustainability into the very core of the business from day one.
Thousands of you are choosing Honest thanks to our refreshing customer experience, fairer pricing and our focus on sustainability and ethics.
Substantial accomplishments to date
In 2021 we raised £750k from an incredible group of angels, operators and funds. Since then, as a small team of 7, we’ve made lots of progress.
We’ve grown our user base 12x reaching an ARR of £700k. (Annualised figure based on monthly revenue performance from February 2023)*.
Our net Promoter Score is over 80 compared with the average of 16 for the UK’s big networks. We’re one of the UK’s top rated networks on Trustpilot and over 40% of our users would be ‘very disappointed’ if we no longer existed, which is what the top startups call “world class” product market fit.
*based on unaudited management accounts.
We’ve rebuilt the tech used to run a mobile network from scratch, giving customers instant notifications and more control through the Honest app which helps reduce our customer support costs too.
In 2022, we were one of the first networks to produce all of our SIMs from 100% post-consumer recycled plastic.We’ve been Carbon Neutral since day one and are now proud to be having a Carbon Negative impact; removing double the CO2 we emit through high quality carbon removal projects including Biochar and Direct Air Capture. And last October, we were thrilled to be the UK’s most ethical mobile network by Ethical Consumer for the second year running (alongside Ecotalk network).
Our revenue comes from recurring monthly SIM subscriptions from both businesses and consumers. We make a 30-40% margin on each SIM.
We’ve built a strong and loyal community with what we believe is an industry leading monthly churn of <2% (last 3 months). In turn, this results in a high LTV approaching £150, and a 1:3 CAC:LTV ratio (we make 3 times what we spend to acquire a customer).
Our new product, Smart SIM, gives users better UK coverage and free roaming on all your most important apps. We've built it to help further accelerate growth, increase LTV and reduce acquisition cost. Smart SIM is an eSIM that can be downloaded anywhere in the world, alongside your existing SIM, making it easier than ever to join Honest for a larger market outside the UK. We're also designing it to be a lower cost product with higher margins than our current UK SIMs.
We are currently aiming to launch the beta version of the eSIM in Q2, with a commercial launch during summer 2023.
Alongside Smart SIM, we’ll be looking to add refurbished phone contracts, opening up a new market segment. We also plan to introduce paid SaaS features such as burner numbers, better visual voicemail and parental controls.
Use of proceeds
The funds will be used over the next 24 months, with the aim of us reaching profitability.
We’ll look to grow from just under 4,000 to 50,000 live SIMs through product lead growth, increased acquisition spend and channel expansion (inc. comparisons sites).
We’ll invest in our tech platform, taking our customer experience to the next level and upgrading our app for global eSIMs. We’ll launch Smart SIM beta in Spring 2023 and commercially in Summer 2023.
We’ll grow our superstar team across engineering, marketing and support and continue working to establish ourselves as the world’s most sustainable and ethical mobile network.
The pre-money valuation for this campaign has been calculated on a fully diluted basis, including existing rights to equity that may dilute investors in the future.
In this case, the valuation on the campaign includes (i) issued share capital (ii) options and (iii) a media for equity deal with DMG Ventures as outlined below.
The Company has 3 share classes – A Ordinary (Media) Shares, Ordinary Shares (voting) and B Ordinary (non-voting) Shares.
The A Ordinary (Media) Shares carry a 1x non-participating preference and broad based weighted average anti-dilution rights.
This means that, on an exit or liquidation, holders of A Ordinary (Media) Shares will be entitled to receive 1x their investment back first before the remaining proceeds are distributed to holders of Ordinary shares. However, if holders of A Ordinary (Media) Shares would receive more from the proceeds being distributed pro rata amongst all shareholders as if they were all one class of shares, then the preference will not apply and proceeds will be distributed pro rata amongst all shareholders.
All investors in this round, other than DMG Ventures, will be receiving Ordinary Shares.
Media for Equity:
As part of this funding round the Company has entered into a media for equity arrangement with DMG Ventures.
DMG Ventures will be issued A Ordinary (Media) Shares worth £500,000 in the Company at the same share price as Seedrs investors, in exchange for media placements.
The equity being issued to DMGV has been factored into the pre-money figures for this campaign.
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.
Plain Text Version:
£10+... Become an Honest VIP:
• Your network name will show honestVIP instead of honest when you order your investor SIM.
£10+... Limited edition investor stickers:
• Stickers available for the first 100, 250, 500 and 1,000 investors.
£10+... Investor status in the app:
• See your investor profile and your investor number.
£100+...Skip the 5,000+ Smart SIM waiting list:
• Be first to get your hands on a Beta Smart SIM.
• Free Smart SIM for 1 year:
• Invitation to future investor events
• Free Smart SIM for life
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