Last year, two retail and financial experts Ashley Horn and Fahad Khan created a community that puts local, high-quality and sustainable products in the hands of consumers, helping to rebuild the economy. independent businesses. Thus, Creoate was born!
According to the founders, the company was formed to eliminate the issues surrounding the current wholesale ecosystem. Based in London, Creoate’s mission is to democratize wholesale by connecting the world’s best sellers with independent retailers.
“Sourcing brands as an independent retailer is almost impossible, an experience I had myself when running a multi-brand retail store in London,” said Ashley Horn, co-founder of Creoate. “There are over 30 million brands on Instagram and it’s getting cheaper and cheaper to launch a new product, but knowing what to buy as a retailer is extremely risky, expensive and time consuming. To make matters worse, not all of the banks I spoke with wanted to fund inventory, so we turned to expensive credit cards with 18-30% rates just to pay for goods. I felt the barriers were so high for an independent business to thrive, even though there was so much demand from consumers. We could see that this system was not sustainable and that there had to be a better way ”.
£ 3.5m raised
Recently, the online marketplace raised $ 5million (around £ 3.5million) in a funding round led by Fuel Ventures with the participation of Vinted founder Justas Janauskas.
Creoate plans to use the funding to develop key go-to-market teams, double its traction in Europe, and add more advanced tools and analytics to the platform to accelerate the business partnership.
The UK company aims to help independent retailers buy sustainable and unique products from brands and wholesalers on one centralized platform. Creoate uses AI and predictive analytics to help retailers forecast sales and effectively manage inventory levels under sustainable payment terms.
Creoate has built a suite of B2B software tools for brands and wholesalers, making them instantly wholesale ready with just three clicks. The company’s software has eliminated up to 40% of middleman costs, helping the community to save money.
Once a retailer has joined the Creoate community, they can browse and purchase wholesale items from handpicked brands, as well as gain access to exclusive Creoate payment terms.
Instead of relying solely on data from traditional sources such as bank statements, the company’s data engine, Bifrost, uses proprietary market data to make instant payment decisions for each retailer.
Each brand on the Creoate platform is then personally curated by an internal team of buyers to ensure it comes from a diverse, representative, inclusive, creative, and skilled group of companies from across the country.
“Ever since Mom and Pop stores, like the ones my family runs, have been faced with bad information, discriminatory prices and unpredictable cash flow,” said co-founder Fahad Khan. “I have seen with my own eyes, working in financial services, how little data is used today to make inventory decisions, which excludes millions of companies from financial inclusion. This is where we believe technology can add the most value, enabling businesses to be more resilient and make more money. By focusing on how inventory is bought and funded, we are building an omnichannel future where consumer offline shopping makes the most of business-to-consumer online commerce. It’s neither.
The growth of Creoate
Since its inception, Creoate’s solution has been adopted at an exponential rate. In the past six months, more than 25,000 retailers have registered, representing a 1,600% year-over-year increase, the company said in the press release.
Additionally, retailer adoption has grown to 7,000 per month over the past three months and is expected to increase 6-fold by the end of the year as economies open up further.
On top of that, the team has quadrupled over the past six months to meet demand and is expected to more than double by the end of 2021.
Currently, the company operates in 10 countries, including the UK, France and the Netherlands, and its UK retail network alone already has 4.5 times more locations by number of doors than Boots, Marks and Spencer and John Lewis reunited.
“Unless you’re in the retail world, it can be hard to really understand how flawed the system is for the 2.5 million retailers and 30 million emerging brands that Creoate serves,” said Mark Pearson, Founder and Managing Partner of Fuel Ventures. . “We are captivated by Creoate’s technology which draws on the real experience and empathy of the founding team. The incredible growth of Creoate, despite a very difficult economic environment, is clear proof of the essential value it offers to independent businesses. At Fuel Ventures, we only invest in super ambitious and hardworking founders and companies that have large-scale potential globally and with Ashley and Fahad, that’s exactly what we’ve found.