Information on the Target

Bloobloom, founded by Fares and Abbas Manai in 2018, is an innovative prescription eyewear brand that is significantly impacting the digitization of the eyewear industry in the UK. The founders, who have extensive backgrounds in finance and technology, identified a substantial market opportunity given that only 5% of eyewear sales occur online, compared to 20% across total retail. This discrepancy signifies a potential £500 million revenue opportunity within the UK eyewear market alone.

Bloobloom offers a unique consumer proposition, allowing customers to order five pairs of glasses to try on at home and return any pairs they do not wish to keep. Additionally, they implement a “pay what you can” model for second purchases, empowering customers with flexible pricing options. With in-house designs that eliminate licensing fees and direct sourcing from manufacturers, Bloobloom efficiently sells products directly to consumers, enhancing value and accessibility.

Industry Overview in the UK

The eyewear industry in the UK has witnessed substantial growth in recent years, driven by changing consumer preferences and advances in technology. Despite traditional retail dominance, a shift towards e-commerce has begun, with the pandemic accelerating this trend as more consumers seek the convenience of online shopping. The potential for the industry to grow further is considerable, as many customers are still unaware of the digital options available to them.

Moreover, the demand for prescription eyewear is increasing, attributed to rising awareness of eye health and more prevalent screen usage. The current market is characterized by a mix of established brands and emerging online players challenging traditional paradigms. This competitive landscape presents opportunities for growth, especially for innovative companies like Bloobloom that are capitalizing on current digital trends.

In addition to the burgeoning e-commerce segment, the focus on corporate social responsibility (CSR) is reshaping consumer expectations. Brands that contribute positively to society, such as by providing eyewear to those in need, are gaining favor among consumers, particularly millennials and Gen Z. This trend is not only beneficial for brand image but also essential for fostering customer loyalty.

As competition intensifies, companies that offer unique propositions and align with consumer values are likely to thrive. Bloobloom’s model of supporting non-profit initiatives in developing countries addresses critical global challenges while enhancing their market position.

The Rationale Behind the Deal

The £1 million seed investment from dmg ventures into Bloobloom is rooted in the significant growth potential of the firm and its innovative approach to the eyewear market. By focusing on direct-to-consumer sales and leveraging online platforms, Bloobloom is poised to increase its market share rapidly, addressing a gap in the online eyewear sector effectively.

dmg ventures aims to utilize this partnership to enhance Bloobloom's brand visibility in the UK and other international markets. Such strategic support can help Bloobloom capitalize on the burgeoning trend of online sales, reinforcing its position as a leader in the digitization of the eyewear industry.

Information About the Investor

dmg ventures is the venture capital arm of dmg media, known for investing in innovative businesses that demonstrate strong growth potential. With a focus on technology and consumer markets, dmg ventures aims to empower startups with the resources and expertise to accelerate their growth.

By partnering with Bloobloom, dmg ventures expects to not only contribute financial backing but also provide strategic guidance and marketing support to expand Bloobloom's footprint. Their experience in cultivating emerging brands positions them well to foster Bloobloom's ongoing success.

View of Dealert

The investment by dmg ventures in Bloobloom appears to be a promising one given the brand's unique offering and robust growth trajectory. Bloobloom's innovative model of allowing customers to experience products at home while also addressing social issues through charitable partnerships underscores its strong value proposition.

Furthermore, the growing trend of online shopping, particularly in the eyewear sector, aligns well with Bloobloom’s business strategy. The company's rapid revenue growth, achieving a tenfold increase in 2020, signals strong market acceptance and operational efficiency.

As Bloobloom expands its brand awareness with the backing of dmg ventures, it is likely to capture an even larger segment of the market. The alignment of Bloobloom's mission with current consumer values enhances their appeal, suggesting that this investment could yield significant dividends in the future.

In conclusion, this collaboration stands out as a well-thought-out investment with both companies having clear complementary strengths. If managed effectively, the partnership between dmg ventures and Bloobloom could redefine the eyewear purchasing experience in the UK and beyond, setting a benchmark for future entrants in the sector.

View Original Article