Liquid supplements specialist YourZooki has secured a £1.6m funding facility with Metro Bank as it looks to accelerate its expansion into North American markets.
The new funding comes as revenues trebled in the previous twelve months, with online demand rising 750% during the pandemic.
The funding will enable YourZooki to scale up its international distribution network, after signing a recent contract for US and Canadian market entry with GNC (General Nutrition Centre), the world’s biggest specialist supplement retailer. It furthers YourZooki’s share of the rapidly growing global dietary supplement market, estimated to reach $53bn by 2023.
Metro Bank’s backing is the third round of investment secured in just under 12 months by YourZooki. In August, it received a £950,000 funding package from Investec, and underwent two funding rounds totalling £300,000 with the Lancashire County Council Rosebud Fund, managed by GC Business Finance.
This allowed YourZooki to significantly expand its Blackpool and Preston-based production capabilities, after demand soared during the pandemic. Its direct-to-consumer sales increased by 750% – largely driven by the continued growth of its recurring subscription base revenues.
The Metro Bank funding is comprised of an £800,000 Coronavirus Business Interruption Loan (CBIL) and an £800,000 invoice financing facility.
YourZooki’s presence in UK high street retailers now includes Boots, Holland and Barrett, Harrods, Selfridges, Planet Organic and Wholefoods as well as John Bell & Croydon, the pharmacist to Her Majesty The Queen, where theirs is the top selling vitamin product.
In 2021 YourZooki will be rolling out a number of new products within the US and UK including Hydrolysed Marine Collagen, Vitamin D3 and Probiotics supplements.
Marcus Mollinga, co-founder of YourZooki, said: “2020 was obviously a demanding year for many businesses, but we were fortunate to be able to scale up quickly and enjoy incredible growth as a result of market conditions brought on by the pandemic. There have been noticeable shifts in consumer behaviour towards prioritising health and wellbeing, and with it an increase in demand for more effective and enhanced supplements than the traditional pills and powders.
“Our sales have risen considerably as a result, and Metro Bank’s funding will enable us to meet this increased demand, grow our operations and concentrate on our US and Canadian expansion. The bank’s backing has been crucial to ensuring we’re primed for this next phase of growth, with new product launches and listings in the pipeline and an exciting year on the horizon.”
Jack Buck, Commercial Banking Manager at Metro Bank, said: “Even during the challenging conditions brought on by coronavirus, with the right support, there are businesses out there that have the potential to thrive. YourZooki’s focus on ecommerce and its subscription model saw demand reach new highs last year, and has provided a solid foundation for impressive growth. Metro Bank’s funding facility will support this further as they push into North America. Marcus and Jack have built a compelling business in YourZooki, and I look forward to seeing how it grows under their guidance.”