Activewear brand TALA lands £5m funding boost from top investors
Founded by the influencer Grace Beverley, TALA will announce its latest fundraising this week led by one of the early backers of Me+Em, the women's fashion brand, Sky News learns.
Monday 15 July 2024 13:18, UK
TALA, the activewear brand founded by Grace Beverley, will this week unveil a £5m funding boost from a syndicate of leading investors, including one of the early backers of the womenswear label Me+Em.
Sky News understands that TALA, which was founded by Ms Beverley in 2019 and now employs 45 people, has secured the seven-figure capital injection from Pembroke VCT, Venrex and Active Partners - all of which were already shareholders in the business.
Frequently labelled one of Britain's most prominent influencers, Ms Beverley has drawn nearly half a million followers to TALA's Instagram account, underlining the changing way consumer brand-owners are building their companies' customer bases in an era increasingly dominated by social media channels.
The new funding will be used to aid TALA's international expansion, initially in the US, where it says it has gained significant customer and social media traction.
It also intends to explore the potential for establishing a physical standalone high street retail presence for the first time.
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Tap hereBased in London, the brand has seen a tenfold rise in monthly revenues since its last fundraising three years ago, and is now sold in all Selfridges stores in the UK.
Ms Beverley described the fundraising as "an incredibly exciting milestone in TALA's growth".
"TALA remains proudly women-founded & women-run - the large majority of our leadership positions and board positions are held by women, something I am immensely proud of that sets us apart from most women's businesses," she said.
"Just 2% of VC [venture capital] funding in the UK goes to female-founded businesses, so I don't underestimate how statistically difficult it is to reach this stage of a business lifecycle.
"Our customers are at the heart of everything we do and every decision we make, and I'm thrilled to continue to serve them well-thought-through wardrobe favourites and problem-solving pieces for women, by women."
The £5m fundraising comes amid a boom in parts of the so-called athleisure market, with data from Precedence Research suggesting the global market, which exceeded $360bn in value last year, would grow to generate $880bn in sales by 2033.
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TALA's breakneck growth and the success of its founder has not been entirely unblemished: in May, the advertising watchdog asked it to remove six social media posts which it said broke its rules - a verdict disputed by the company.
Morgan Fowles, TALA's chief executive, said the capital raise being announced this week was particularly notable given liquidity constraints in private funding markets.
"We experienced first-hand that raising three years ago was a powerful unlock to growth, allowing us to scale faster, take calculated risks and benefit from a network and shared resources across the portfolio companies," she said.
"We are fortunate that our results have meant we have the opportunity to raise funding again, with such strategically aligned investors, and with the incremental opportunities it will afford."
Pembroke VCT was among the investors in Me+Em, the fashion brand whose profile soared this month when one of its dresses was worn by Victoria Starmer, the wife of the new prime minister, as they arrived in Downing Street on the morning after the general election.
Andrew Wolfson, Pembroke VCT's chief executive, said the new funding injection "reaffirms our confidence in the brand's innovative approach and strong market appeal".
"Grace Beverley, Morgan Fowles and the team have a unique ability to tap into their consumer base, leveraging organic channels to expand TALA's presence and reinforce its core values," he said.
"This investment will enable TALA to accelerate its expansion, enhance its product range, and strengthen its global market position.
"The global athleisure market is ripe for disruption from bold, young entrepreneurial brands, and TALA is well-positioned to lead the way."