Rebundle, a St. Louis-based hair startup, announced today that it has raised 1.4 million in a pre-seed round. The investment event was organised by M25, a venture capital company with a focus on the Midwest. Rebundle had secured six-figures in grant and other non-dilutive funding prior to its pre-seed round, according to CEO and co-founder Ciara Imani May in an interview with TechCrunch.
Rebundle is a company that makes and distributes plant-based hair extensions. May guided me through a few essential issues despite my lack of experience with hair extensions. First, the market is both big and diverse, with a wide range of price points ranging from low-cost (plastic-based items) to high-cost (wood-based products) (human hair). Second, hair extensions made of plastic might irritate the scalp.
May, before launching Rebundle, was focused on living more sustainably and was aware of the annoyance that plastic extensions may cause, she added. Her company’s solution has the ability to eliminate plastics from the product, making consumers’ heads feel better while also limiting waste, which is good for the environment.
Rebundle employs banana fibre as the core material in extensions that it offers in a range of colours to make its product. The corporation is notably constructing new production facilities in the United States rather than overseas.
Manufacturing leads us back to the capital round, which will be used to invest in both her workforce and her supply chain, according to the CEO. Rebundle was selling out of shares in under an hour before obtaining fresh funds, indicating that its previous financing sources were insufficient to allow it to grow adequately. This is where venture money comes in.
Rebundle is a direct-to-consumer (DTC) firm that sells its goods via its website. May was asked how often someone who wears hair extensions would change them out for a new set in a year. She stated that might happen up to five times a year. This implies Rebundle is selling a tangible commodity that looks to be a recurring purchase via its own channels. The extensions market’s gross margin profile isn’t evident to us at this time, but the potential frequency of extensions sales makes Rebundle an intriguing business case.
Remember how much venture funding was poured into the DTC model for items without a recurring hook, an experiment that had mixed results?
On the apparent subject of product subscriptions, the co-founder remained tight-lipped, saying simply that there is “space to explore” with the concept. She stated that today’s Extensions consumers do not often purchase subscriptions to the software. I wouldn’t be surprised if Rebundle raises again this year if it can grow its onshore production and add a recurring service to its product mix.
It is unlikely that it will be required. According to TechCrunch, the company’s current round was completed with a rolling closure, but the funds will offer at least 18 months of runway, if not longer. So Rebundle is unlikely to need further funding in the near future, but this hasn’t stopped many firms from accepting additional funding when it’s provided.