News

A London based contemporary hair care brand has secured £550,000 from the Greater London Investment Fund to support its range expansion. The funding will enable the brand to recruit a number of new employees over the next three years.

Champo, whose name comes from the Sanskrit word for shampoo is influenced by the ancient principles of Ayurveda, meaning their range is natural and sustainable as well as being vegan and cruelty free. The products are made without the use of silicone, sulphates or parabens.

Using knowledge passed on by the company founder’s grandmother, the combination of oils and techniques treats and restores hair. Though this knowledge originated in India, the shampoos are designed in the UK and produced in Dorset, with each botanical being rigorously researched and tested. The range is currently stocked in Harrods and is a Marie Claire Hair Awards 2021 and INDY BEST/BUY 2021 winner.

Kuldeep Knox, Founder and Chief Executive Officer of Champo, commented: “The funding has come at a really important time as we grow our business to meet market demands. The UK hair care market is at a really exciting point in time. People are willing to pay more for superior products, but they expect different things from their shampoo than they did 5 years ago. They want a product which is intelligent, aesthetically pleasing and uses high quality natural ingredients. Our thanks to The FSE Group for supporting our growth ambitions and guiding us through the funding process.”

David Booth, Investment Manager for The FSE Group, which manages the £55 million GLIF debt fund on behalf of Funding London, commented: “We were impressed by the drive and determination of Kuldeep who has already established a thriving brand in a high growth market segment. Champo is typical of the innovative high growth businesses we seek to support and we look forward to supporting Kuldeep through the next stage of business growth.”

Maggie Rodriguez-Piza, CEO at Funding London, added:“We are delighted to support Champo’s team expansion and their growth ambitions through GLIF. Kuldeep has built a successful ethical brand in less than three years which goes from strength to strength. We are excited to be part of their journey.”

GLIF is a £100m initiative to help address the SME finance gap in Greater London, promoting economic growth through enterprise and an inclusive and sustainable economy. £55m of debt funding is available, via loans between £100,000 and £1m, to early-stage and established SMEs looking to scale-up and realise their growth ambitions. GLIF is financed through the European Investment Bank (EIB), European Regional Development Fund (ERDF), London Waste & recycling Board (LWARB) and Funding London’s Legacies.

Award-winning ARC marine has secured a £1m equity investment from the Cornwall & Isles of Scilly Investment Fund (CIOSIF), as part of a larger £2m-plus funding round.

The deal was led by the FSE Group, the appointed fund manager for CIOSIF, with the investment enabling ARC (Accelerating Reef Creation) Marine to create at least six new positions over the next three years as the business continues to expand its operations.

Human activity is exacerbating the effects of climate change globally, with major impacts on ocean health. ARC marine provide sustainable solutions to combat these subsea impacts.

Since 2015, ARC marine have been developing and creating nature-inclusive products using recycled materials. The company’s first product – Reef Cubes – are the only carbon-neutral, plastic-free solution for marine habitat restoration in the world, and a sought-after solution for various global marine projects.

Regionally made using their propriety non-toxic concrete, their products are used in a variety of marine applications across aquaculture, coastal defence, reef conservation, eco-engineering and sub-sea protection. They can help reduce the carbon footprint of deployments by 90%, naturally merging into ecosystems and negating costly, often damaging decommissioning activity.

In this way, ARC marine aims to have an environmental, economic and societal impact across the South West and beyond.

Tom Birbeck, Co-Founder & CEO of ARC marine commented: “This funding is critical to ARC Marine being able to expand production in Cornwall, enabling us to accelerate growth to meet increasing demand from the marine renewables sector globally, as well as provide opportunities across our region. Having supportive investors such as CIOSIF will be key to underpinning our aspirations of leading the world in protecting and enhancing marine habitats from necessary man-made intervention.”

Meg Salt, Investment Manager at The FSE Group, added “With the growing global focus on carbon net zero and ocean health, ARC marine is well placed to disrupt and exploit the emerging market for nature-inclusive design habitat enhancement and to replace traditional unsustainable subsea technologies. Their products can enhance and rebuild marine habitats, restoring biodiversity, while minimising the carbon footprint to bring their products to market. We look forward to working with Tom and helping the company achieve their expansion plan.”

The £40m Cornwall & Isles of Scilly Investment Fund provides debt and equity finance from £25,000 to £2 million to help growing small businesses across the region. It has been established by the British Business Bank in partnership with the Cornwall and Isles of Scilly Local Enterprise Partnership (LEP).

Ken Cooper, Managing Director from the British Business Bank, said: “We’re delighted that we are actively supporting sustainability and innovation through the British Business Bank’s regional funds. With the environment high on the global and regional agenda, tackling biodiversity loss is a priority on land and sea. ARC marine are showing how it is possible to leave a sustainable marine habitat benefit as a positive legacy for future generations.”

John Acornley, LEP non-executive director and chair of the CIOSIF Advisory Board, said: “It is great to see ARC marine at the forefront of eco-engineering, supported initially by Cornwall’s Marine-i technology innovation project and Plymouth University to develop their unique product for global markets, and now accelerated by CIOSIF’s investment. This is an impressive solution to a global problem and it is fantastic to see Cornwall leading the charge.”

Craig Dudenhoeffer, Chief Innovation Officer, Sustainable Ocean Alliance and Co-Founder of the Ocean Solutions Accelerator: “Sustainable Ocean Alliance (SOA) is dedicated to restoring the health of the ocean in our lifetime. We are delighted to see ARC Marine, one of our 45 alumni start-ups, complete this successful funding round. We are thrilled to continue supporting ARC Marine as they develop solutions for improving the well-being of our ocean.”

Advisers on the transaction were: Field Seymour Parkes (FSE legals) and Stephens Scown (ARC marine legals).

CIOSIF is supported financially by the European Union using funding from the European Regional Development Fund (ERDF) as part of the European Structural and Investment Funds Growth Programme 2014-2020.

For more information about the Cornwall & Isles of Scilly Investment Fund including how to apply, please visit www.ciosif.co.uk  or follow the fund on Twitter at @CIOSIFBBB2

Read more about ARC marine at https://www.arcmarine.co.uk/

Case study

A Wellingborough-based paper honeycomb board manufacturer has secured £750,000 to expand its product range, create jobs and enter new markets.

The Alternative Pallet Company Ltd who trade as PALLITE® received funding from the Midlands Engine Investment Fund (MEIF) provided by The FSE Group Debt Finance Fund and backed by the Coronavirus Business Interruption Loan Scheme (CBILS). The MEIF funding will help to create 15 new jobs in the next year, with the ability to offer apprenticeships to the under-25s.

The investment will also allow the business to expand its product offering with the creation of a new furniture range - following on from its pop-up desk success. The business is also looking at entering new markets in the high-value fashion and fragile goods sectors, as well as expanding into Europe and North America.

PALLITE ® is an award-winning international designer and manufacturer of paper honeycomb board products made from over 80% recycled materials. The 100% recyclable products aim to empower customers to make sustainable choices while still achieving efficiency, productivity, and bottom-line cost improvements.

Iain Hulmes, CEO of The Alternative Pallet Company, said: “All of our products are designed in-house and are both nail and splinter free and exempt from heat treatment legislation for exported products. Although we started out as a pallet business, we listened to our customers and further developed the PALLITE® range to include collapsible pallet boxes, insulated pallet boxes, layer boards and pallet feet. The FSE Group guided us through the funding process and we appreciate their help to achieve our growth ambitions.”

Ann Marie McFadyen, Investment Manager at The FSE Group, which manages the MEIF Debt Finance Fund, adds: “PALLITE® has an established product range demonstrating commercial traction with a large customer base. The UK transport sector produces over 25% of greenhouse gas emissions so it is great that Iain and his team are creating environmentally friendly products that will help reduce these emissions. It is encouraging to see the business enter new markets and we look forward to this next exciting stage of their journey.”

Lewis Stringer, Senior Manager at the British Business Bank, said: “The MEIF is committed to supporting businesses who are driving the Midlands’ net-zero agenda through innovation. This latest round of funding will help PALLITE® expand its 100% recyclable product offering, create jobs and break into new markets. We encourage other businesses, across the region, seeking to expand and grow to consider MEIF funding.”

Vicky Hlomuka, SEMLEP’s Growth Hub Manager, commented: “PALLITE® is a perfect example of how a business can innovate to develop more sustainable products that not only benefit the environment, but increase customer satisfaction. It’s fantastic to see the Midlands Engine Investment Fund investing in yet another Northamptonshire based businesses to create more jobs and enabling PALLITE® to continue to develop unique product solutions in the packaging and logistics industries.”

The Midlands Engine Investment Fund project is supported financially by the European Union using funding from the European Regional Development Fund (ERDF) as part of the European Structural and Investment Funds Growth Programme 2014-2020 and the European Investment Bank.

The FSE Group, MEIF Debt Finance Fund provides loans between £100,000 and £1.5million to help growing SMEs across the region.

Coalville-based children’s clothing business, Tiny Explorer Apparel, trading as the Töastie Kids brand, has secured a £300,000 investment to develop a new product range and support a comprehensive marketing campaign.

Töastie Kids received the funding from the Midlands Engine Investment Fund (MEIF), provided by The FSE Group Debt Finance Fund and backed by the Coronavirus Business Interruption Loan Scheme (CBILS).

The funding will allow the business to retain its current workforce, while creating 10 new positions within the next 3 years, enabling the firm to fulfil new contracts. Töastie Kids also plans to increase the size of its current premises to accommodate future orders.

Töastie Kids manufactures a range of outdoor clothing for children from birth to 14 years. Its main aim is to encourage children to explore the outdoors for better physical and mental health. By the end of 2021, the business plans to have 100% of its apparel range made using at least 40% recycled material. The innovative range includes puffer jackets, gilets, onesies and accessories.

Töastie Kids has launched its range in Next, Harrods and was selected by Selfridges for its ‘Project Earth’ and ‘Bright New Things’ initiatives. The brand has recently been recognised within the fashion industry as platinum winner of “Best Children’s Fashion Brand” in the Junior Design Awards category.

Lucinda Waite, Co-Founder and Director of Tiny Explorer, said: “We believe that every child should have the freedom to explore nature to their hearts content without restriction, and creating products to allow them to do this should not cost the environment a heavy toll, which is why we set about launching Töastie Kids. The range is made in small quantities and for every order placed, we send along with it a seed-bearing lollipop which the children can plant in their gardens or window boxes and watch it grow.”

Andy Moss, Head of Fund at The FSE Group, which manages the MEIF Debt Finance Fund, adds: “The world of fashion is an incredibly fast paced industry and founders, Lucinda and Kirstie, are both very experienced individuals operating in this sector, which is forecast to continue growing. The team has a clear mission and purpose for their sustainable brand which has seen the range perform well in high-end retailers including Harrods, Trotters and Childrensalon. We look forward to the next stage of its journey.”

Lewis Stringer, Senior Manager at the British Business Bank, said: “MEIF is actively supporting businesses that are pushing forward the region’s low-carbon and sustainability agenda. We’re delighted to see another manufacturing business, in the textiles sector in Leicestershire, being supported and launching its new product range as it gears up for growth.”

Kevin Harris, Chair of the Leicester and Leicestershire Enterprise Partnership (LLEP), said: “I am very pleased to see another Leicestershire innovative clothing manufacturer get the funding package they need from the Midlands Engine Investment Fund to support their growth plans. This is exactly why the LLEP supports this funding initiative.

“It’s thanks to businesses like this that Leicester and Leicestershire are at the forefront of UK garment manufacturing. This award-winning business is showcasing that locally produced products tick all the boxes when it comes to sustainability, ethical practices and quality.”

The Midlands Engine Investment Fund project is supported financially by the European Union using funding from the European Regional Development Fund (ERDF) as part of the European Structural and Investment Funds Growth Programme 2014-2020 and the European Investment Bank.

The Coronavirus Business Interruption Loan Scheme (CBILS) was managed by the British Business Bank on behalf of, and with the financial backing of, the Secretary of State for Business, Energy and Industrial Strategy (BEIS). The scheme ended on 31 March and has been replaced by the Recovery Loan Scheme. 

The FSE Group, MEIF Debt Finance Fund provides loans between £100,000 and £1.5million to help growing SMEs across the region.

A company designing and manufacturing sustainable packaging is the latest business to benefit from the Cornwall and Isles of Scilly Investment Fund (CIOSIF).

Flexi-Hex, based in Porthleven, has secured a £500,000 CIOSIF equity investment as part of a £1.25million funding round which includes multiple angel investors. The deal was handled by The FSE Group, the appointed CIOSIF Fund Manager.

The funding will be used to support the growth of the business, with a focus on international expansion and continuing to develop its pioneering product range, while creating a number of new jobs.

Co-founded by twin brothers Will and Sam Boex, Flexi-Hex produces sustainable packaging solutions originally developed for the shipping of surfboards. The patented honeycomb sleeves are made of 100% recycled paper, are curbside recyclable, and biodegrade within eight weeks.

Renowned for its strength, the innovative hexagonal cell structure provides improved protection for fragile products and offers a superior alternative to plastic and polystyrene products, such as bubble wrap and air pillows, while delivering an attractive product that is appealing to high-end brands.

Creative Director Sam said: “As surfers ourselves, we knew how important protecting the marine environment is to the surfing community and so in 2018 we launched our first Flexi-Hex surfboard sleeve. Since then we have gone on to develop eco-friendly packaging, that is also aesthetically appealing, for use across a range of sectors including drinks, cosmetics and electronics.”

Operations Director Will added: “This investment comes at a critical point in our development, supporting our launch in the US and other international territories as well as helping us to create additional innovative products and pursue our ambitious growth strategy.”

The global packaging market is currently worth almost $1trillion and e-commerce continues to grow following its pandemic boom. Consumer demand is leading the growing move towards sustainable packaging with legislative changes also becoming a key driver. The UK is set to introduce a tax on plastic packaging from April 2022, while some other countries – including Canada and Western Australia – are planning to ban single-use plastic packaging altogether.

Ralph Singleton, Head of Funds, Cornwall at The FSE Group, commented: “Flexi-Hex has a great track record, having achieved 260% organic sales growth year-on-year since launch. The team has established a strong customer base and has credible co-investors already in place. The investment secures 11 high-quality, professional jobs in Cornwall with many more expected to be created post-investment and we are delighted to be working with this vibrant team to help them take advantage of the opportunities available.”

The £40m Cornwall & Isles of Scilly Investment Fund provides debt and equity finance from £25,000 to £2 million to help growing small businesses across the region. It has been established by the British Business Bank in partnership with the Cornwall and Isles of Scilly Local Enterprise Partnership (LEP).

Sarah Newbould, Senior Investment Manager from the British Business Bank, said: “The British Business Bank is actively supporting sustainable businesses around the UK through our regional funds. Flexi-Hex have created an innovative product that will help stem the tide of plastics entering our oceans, while creating jobs in Cornwall. We are delighted to support their further growth.”

LEP non-executive director John Acornley, who chairs the CIOSIF Advisory Board, said: “Flexi-Hex’s mission to tackle plastics in packaging with a sustainably-sourced, biodegradable alternative is an excellent example of a Cornish business that has innovation and sustainability at its heart. Their patented system has applications in a range of sectors and is poised to break into new markets.”

For more information about the Cornwall & Isles of Scilly Investment Fund including how to apply, please visit www.ciosif.co.uk  or follow the fund on Twitter at @CIOSIFBBB2

For more information about Flexi-Hex visit www.flexi-hex.com