Discount Dragon owner Huddled Group has partnered with e-commerce solutions provider THG Ingenuity and raised £1.5m in investment.
Huddled Group owns three e-commerce brands: Boop Beauty and Nutrircicle – selling protein and healthier snacks – as well as online fmcg retailer Discount Dragon. The group specialises in surplus goods, with Discount Dragon selling stock that is often close to its sell-by date.
Huddled Group said the deal would allow it to take orders up to 1am for same-day delivery and help it accelerate its growth ambitions across all three brands, using THG Fulfil’s automated e-commerce facilities, which are capable of processing two million units a day.
The partnership with THG would also provide the opportunity to use AI and live presenters on its e-commerce sites, according to Huddled Group.
The group had also accepted an approach from Shard Capital Partners LLP to invest £1.5m at the current market price of 3.2p per share to support its growth plans, it said.
It said it would allow it to execute its current plans and provide additional working capital for growth. A single institutional investor is to provide £1m of the funding proposal, with the balance of £500,000 coming from Shard Capital.
It said it anticipated the migration of stock and fulfilment operations to THG’s facilities would be completed before the end of quarter three 2025. It did not expect expenditure on warehousing, fulfilment and postage to be materially different following the move.
The directors plan to use authority granted at the annual general meeting on 30 June 2025 to secure £1.1m of the proposed funding. Shareholder approval to issue the remaining shares needed to secure the other £400,000 of the proposed funding will be sought at a general meeting, with details to be confirmed in further announcements.
Well-timed approach
The board said that, while it had previously stated it did not need to raise new money to move the business into profitability, the approach from Shard Capital and opportunity with THG Ingenuity came at exactly the right time to exploit opportunities ahead, following solid revenue growth for all three of its brands in quarter two.
It follows the appointment last week of Michael Ashley – who joined as an independent non-executive director – as CEO.
“This partnership represents a step-change in our ability to deliver circular economy solutions at scale,” said Huddled Group executive chairman Martin Higginson.
“THG Ingenuity’s fulfilment capabilities rival Amazon’s – something we’ve aspired to since we started this business. The ability to process orders until 1am for same-day delivery is a dream for any e-commerce retailer.
“We knew to fulfil this vision, and accelerate our growth plans we would need more capital, and to be approached by Shard Capital Partners LLP regarding a potential investment from a major institutional investor came at exactly the right time.
“Their belief in our mission is a testament to our model and the growth we have shown to date, as well as the growth potential this THG Ingenuity deal will unlock. To take this money into the company at the current market price demonstrates confidence in both the business and its potential.”
THG Ingenuity COO Tom Killeen said: “Partnering with Huddled is a testament to THG Fulfil’s world-class fulfilment and courier management solutions. Our collaboration will empower Huddled to deliver a truly market-leading customer experience, optimising their operations whilst leveraging our industry-leading capabilities, including 1am same-day delivery.
“In addition, their approach to offering sustainable solutions to surplus stock allows us to talk to our clients and offer them a solution to an age-old problem – a solution that reduces waste and maximises efficiency.
“This is about more than just logistics, it’s about leveraging cutting-edge technology to unlock tangible commercial advantages and deliver unparalleled speed and precision.”
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