Trunki receives £3.92m of investment from Business Growth Fund
Capital will be used to support product development and international expansion for children’s travel products company
Children’s travel products company Trunki has received £3.92m of growth capital from the Business Growth Fund (BGF) with a view to expanding its brand outside of the UK.
The deal, which will see BGF take a minority stake in the company and a seat on the board, will allow the Bristol-based firm to expand its range of products in order to appeal to a wider age range, including children under three and six to 12-year-olds.
It plans to use its expanded offering to maximise its presence in overseas markets, including China, France, Germany and India.
Trunki launched in 2006 when founder Rob Law MBE released its flagship product, a ride-on suitcase for children, and since then has expanded its offering to include booster seats, travel pillows, ride-on toy boxes, and backpacks.
The company claims to be expecting revenues in excess of £10m this year and has sold its products via more than 2,500 UK stores and in 97 overseas markets.
Law and his Trunki shot to prominence initially after appearing on Dragons’ Den, where the product was rejected by the Dragons.
As part of the deal, Stuart Rose, the former Body Shop managing director and chairman of toy store Hamleys will join the company as non-executive chairman, following an introduction made by BGF’s Talent Network.
The firm also announced a deal with the HSBC Bristol and Bath Commercial department which will provide further finance to support the company’s growth.
Paul Oldham, BGF regional director for South West England, said: “Trunki has pioneered a new children’s travel product category and over the last seven years has very successfully developed its position as the UK market leader. Rob and his team have recognised that there is a real opportunity to grow the business further – by expanding its range of unique products and by exporting them to overseas markets.
“Trunki is a great example of the kind of business that BGF is committed to supporting. It operates in a growing market, driven by higher birth rates and increased travel. It can boast strong performance as a national success story. But why should it stop there? Rob and his team are keen to take the next step, developing Trunki as an international business, and our injection of capital and wider operational support will help them to achieve this.”
Founder and CEO Law added: “The fundraising process attracted much interest and offers from some significant private equity investors. It was hugely rewarding to see Trunki – a company which I and my team have created – so highly regarded. BGF’s long-term view with no stipulations over exit and access to their talent network was instrumental in my final decision making process.”