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The Chapar

UK - East Midlands
Date Rated:
Valuation (Pre Money):
Industry: Retail
Location: UK - East Midlands
Platform: Crowdcube
£1,000,000 Expansion
Valuation: £13,003,901
Date Rated: 08/05/17



Tax Status: EIS

Business Summary

The Chapar is a new menswear retail concept targeting male consumers who dislike regular shopping, by providing a personal stylist who selects and delivers clothes for them from a wide range of premium brands. The Chapar has over 20k active members and achieved sales of £2.8m last year. This round of investment will be mainly used to fund marketing and to increase inventory levels.

Financial Overview

Date (y/e) Dec-16 Dec-17 Dec-18 Dec-19 Dec-20
Sales Dec-16£2,770,579 Dec-17£4,301,394 Dec-18£7,253,748 Dec-19£11,570,698 Dec-20£16,065,388
Gross Profit Dec-16£1,400,732 Dec-17£2,150,697 Dec-18£3,626,874 Dec-19£5,785,349 Dec-20£8,032,694
GP as % sales Dec-1651% Dec-1750% Dec-1850% Dec-1950% Dec-2050%
Overheads Dec-16£2,230,727 Dec-17£3,392,554 Dec-18£4,191,663 Dec-19£5,677,608 Dec-20£7,100,667
Operating Profit Dec-16-£888,838 Dec-17-£1,241,857 Dec-18-£564,789 Dec-19£107,741 Dec-20£932,027
OP as % sales Dec-16-32% Dec-17-29% Dec-18-8% Dec-191% Dec-206%
Closing Cash Dec-16£225,121 Dec-17£614,467 Dec-18£294,836 Dec-19£402,577 £1,334,604

Note: This financial information has been sourced from the company on 08/05/2017. Financial data is NOT verified by Wheatfromchaff Ltd.
The Chapar has all the key roles covered by people with proven expertise. Its organisational structure is expandable and will support ongoing growth.
The team has strong retail experience and most of them have worked within this industry at both the start-up and growth stage. A successful engaged investor may help to develop the business.
All of the management team is full-time and the Founder has invested over £100k as a Director's loan and is six years into a business where he could obtain substantial financial rewards.
The menswear market is worth over £10bn in the UK alone with online sales growing fast and expected to reach over £3bn by 2019, providing an addressable market of 14.5m men.
Although there are not many testimonials, the company works with over 60 premium brands with no heavy reliance on any one and it is shipping over 400 individualised trunks a week to its members.
The company is providing its customers with a personal styling service at no extra cost, but the online segment is tough and similar and well-backed players exist in other countries.
Gross margins have been supported by an efficient inventory planning system and avoiding discounts on its products. The strong marketing effort intended should drive further growth.
This round of investment will not provide enough cash to achieve break-even unless the company reduces the marketing spend, but the company intends to raise further debt/equity next year.
If the team can deliver these sales projections and achieve a comparable exit multiple to others in this space within five years, investors in this round could achieve an over five-fold return.


The Chapar is developing an exciting concept that is building strong relationships with customers by providing a free styling service with top brands. The current marketing strategy is securing members at an average of £75, but if the lifetime value of £475 per member is sustained the company should achieve profitability readily by scaling sales and leveraging overheads.

The company intends to raise £1m in this funding round but the Crowdcube financial snapshot shows a figure of £1.75m of new equity in 2017. If this is not raised, it will further reduce the company's limited headroom and the ability to provide the required funds for marketing, with a consequent knock-on effect on growth. A further funding round is expected in any case in 2018 so investors should note that an investment of £25k is required to secure pre-emption rights.

Related Links

Crowdcube Pitch


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