WhyBuy

WhyBuy

PROVIDED BY
STRUCTURESingle company deal
MIN. INVESTMENT£10,000
SECTORTechnology
CLOSING DATEEvergreen
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Summary

WhyBuy is capitalising on the booming sharing economy and the growing consumer appeal of waste reduction with the launch of a new app. The app allows users to instantly browse, book and rent a wide range of high-quality household products. Items can be rented for any length of time without the complications of long-term contracts or the pain of storage and maintenance.

WhyBuy is focused on sustainability and minimising carbon generation; they use a 100% electric delivery fleet and ensure that orders are localised. 

They are targeting a market for whom renting goods rather than owning is the new normal. It’s a proven model that is being adopted by some of the UK’s largest retailers. Just this month, John Lewis announced the introduction of a furniture rental scheme and Selfridges announced they will offer their fashion items up for rent.


WhyBuy Limited is one of the Investee Companies within Station12’s Sports, Entertainment and Knowledge Service. Investors in the Service are able to select individual companies, such as WhyBuy Ltd, or any combination of companies offered by the Service.

Download the app at https://applk.io/whybuy


Highlights

  • £250,000 raised in seed funding
  • 5,000 downloads in the first 4 weeks following a July 2020 launch
  • Average order value £50
  • Green start-up with 100% electric delivery fleet
  • Proven business model within a growing market
  • Investment will fund delivery expansion and an increased product range

Investment strategy

The Service’s objective is to maximise returns for individuals by investing in a diverse portfolio of Investee Companies within the Sports, Entertainment and Knowledge sectors. The Service aims to create an attractive risk/return profile, underpinned by the tax benefits offered by the SEIS/EIS. The Service will actively manage its portfolio by appointing a representative from the Investment Manager to be a director to the board of each Investee Company.

The Service seeks Investee Companies with clear strategies, significant potential to grow and deliver enhanced capital returns through selling products or services that customers want to pay for. For these investments, the focus will be on businesses that have a demonstrated proof of concept and are already generating revenues, or there is a clear pathway to revenues, breakeven and long-term profitability and capable of significant scale when supported by investment. Investments may be made into pure startups, some of which may be succession startups. Investments are likely to be predominantly, but not exclusively, in the UK. 

The Investment Manager will be responsible for identifying and evaluating prospective Investee Companies, including analysis of these target Investee Companies, exercise its discretion in deploying the Service’s subscriptions, and for overseeing Investee Companies once the Service has invested in them. 

The Service will focus on investing in the Sports, Entertainment and Knowledge sectors which the Investment Manager has significant operating and investment experience in. The Investment Manager uses its knowledge and networks to assess the market and identifies attractive sub-sectors and stages of the value chain to target. These targets are fluid and change as the market evolves.

Exit strategy

It is expected that within 4 to 6 years investors will have the opportunity to sell their shares during later rounds of fund raising or when the company floats/completes a trade sale.

Products and services

The WhyBuy app allows users to access and rent household items on demand for the lengths of time they want, without any of the complications of long-term contracts or hassle surrounding deliveries and is available on the Google Play Store and Apple App Store.

WhyBuy selects and maintains its product range directly, which means they ensure that everything they have available on the app is of the highest quality and from well-known brands.  This is not a peer to peer concept. Providing the customer with the assurance that these items are managed directly ensures an excellent experience of hiring from WhyBuy.  All products are maintained and prepared to be functionally and hygienically ready for the next customer, quickly and efficiently.

WhyBuy has no hidden charges like deposits or security fees and offers hourly delivery and collection slots.

If you’re planning on throwing a garden party this weekend, you could have a high-power pressure washer delivered on Friday and a BBQ, patio heater, bean bags, beer coolers, outdoor sound system and lights on Saturday. Then have them all picked up on Sunday at a time of your choosing.

In the past, customers had to make difficult decisions about being green and choosing between doing the easy thing and the right thing. WhyBuy allows customers to access 100s of items but for a fraction of the cost of ownership and without the associated hassle of storage and maintenance with something often used only a couple of times per year.

With a 100% electric delivery fleet, WhyBuy is one of the greenest start-ups in London and is dedicated to saving time, space, money and the environment.


Market approach

Market context

In 2018, hardware sales in the UK generated over £12.5 billion in revenue.  B&Q alone make over £3.8 billion a year in revenue. 

According to PWC, the value of the sharing economy will be £140 billion by 2025. Which will be an 1800% growth for the decade to 2025. 

There are a number of suppliers operating a B2C peer to peer rental model for household goods and a number of suppliers operating a B2B managed inventory rental model. WhyBuy is unique in offering B2C customers rental goods from a managed inventory. 

Current status

The company has raised seed funding of £250,000 to fund the development of the app and launch the business which has now started operations. Originally the company aimed for 5,000 downloads in the first 8 weeks of operations and this was achieved in only 4 weeks.  With an expectation of the branding and call to action campaigns generating significant orders in the coming quarter, WhyBuy is looking for funding to support a rapid growth of the business as it expands product range, expected volume of orders and delivery area. 

Growth plan

There is a captive market for the service and WhyBuy believe that within the first year it will have more than 25,000 users.  They have modest expectation of serving 5,000 order per month and the average order value is already over £50 which is ahead of target.  With further funding support of £250,000, this could be exceeded and would allow the company to begin exploring launching in other cities across the UK at the beginning of 2021 with a goal of launching a further 5 cities in the following 9 months and assessing international opportunities.



Key team

Jamie Conway - CEO

Prior to Whybuy, Jamie founded Made Television where he held the position of CEO. Made Television was the largest operator of City TV Channels in the UK until 2018 when the group was acquired by former Mirror Group Plc’s CEO, David Montgomery.

Jamie was a finalist for the Yorkshire EY Entrepreneur of the Year for 2017 for building Made in Leeds Television from concept through to multi-million turnover in 2.5 years.

Jamie is a seasoned broadcast professional with several years’ experience in broadcast deployment in numerous territories. He was involved in the deployment of television stations in Europe as part of Chellomedia and has also seen the re-versioning and modelling of some of the biggest IPTV companies (Vice Media - VBS.tv) to enhance their reach, exposure and appeal.

Jamie has launched multiple stations from concept to delivery and has a keen understanding of the role of technology in ensuring future-proofing and security-of-investment in a company’s early stages.


Denis Oyibo - Operations Director

Denis has over sixteen years of experience working in the logistics industry, managing people, processes, machinery and IT systems within a high-speed warehouse or office environment. 

He is DHL 1st choice trained and possesses a degree in Physics. He is a problem solver and logistics management has, in his own words, become second nature. 

He has the skill-sets required define and to make workplace processes more efficient and productive through constant improvement. 

Denis is self-motivated and quickly adapts to any operation, whilst possessing the strategic mindset needed to implement fast change in defining processes as the company grows.

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