Lingerie brand Bluebella raises 1 million pounds

London-based lingerie and nightwear fashion brand Bluebella has raised more than 1 million pounds in crowdfunding, double its original target, as it attracts more than 700 investors on Crowdcube.

Bluebella was founded in 2005 by Emily Bendell who wanted the lingerie label to target women who see lingerie not as “functional or sexy” rather as a “fashion crossover and intimate self-indulgence”. The brand is already stocked in Asos, Figleaves, House of Fraser, Topshop, Fenwicks, Zalando and Urban Outfitters, across more than 25 countries, and has seen its e-commerce business increased by 130 percent from 2015 to 2016.

The lingerie brand recently launched in the US with key retailers Nordstrom and Bare Necessities, as well as its own dedicated US e-commerce site, and turned to Crowdcube to raise 500,000 pounds towards a dedicated marketing budget to target initiatives such as digital customer acquisition/retention and brand profile in key markets, such as the US, where it currently achieves 20 percent of its online sales.

In addition, the funds, which currently stands at 1,087,630 pounds, will also be used to create online marketplaces as new channels, such as listing Bluebella products on high traffic sites such as La Redoute.

Bluebella secures 1 million pounds through crowdfunding

The brand is forecasting sales of 1.6 million pounds in 2016, which it states has been achieved based on product and PR, with this additional funding for its dedicated marketing it is hoping to accelerate growth generated sales to 4.7 million in 2017.

With online lingerie sales experiencing sales growth of 265 percent against an overall online retail market growth of 116 percent and a forecasted growth of 17 percent per year to 40 billion dollars in 2020, largely driven by growing e-commerce, it is hardly surprising that more than 700 people wanted to invest in Bluebella.

Investors were able to select two types of shares, either B Investment, of 10 pounds or more, which does not have any voting or pre-emption rights, or A Ordinary, for investments more than 5,000 pounds, which allows one vote in any circumstance; certain pre-emption rights; and rank equally with B Investment Shares in respect of dividends and capital distributions.

There were certain rewards for investors, 100 pounds equaled a 25 percent discount on a purchase, 5,000 pounds gave 40 percent discount for a year, while 50,000 pounds gave the investor to name a new season set of Bluebella lingerie, as well as an invitation to a champagne dinner preview of the new collection, and a chance to discuss future strategy with the founder.

The largest investment received during the crowdfunding campaign was 100,000 pounds.

Commenting on why she took her brand on Crowdcube, Bendell said: “As a consumer brand we felt that crowdfunding would add a brilliant marketing element to the fundraising campaign – not only creating a buzz around the campaign, but also an ongoing army of brand ambassadors.”

Images: Bluebella Facebook