Soanua EIS (Rise & Fall)

In the luxury goods market, there is often staggering disparity between retail prices and production costs – primarily due to steep profit mark ups imposed by top brands. 

Moreover, most brands order a season or more in advance, and these long supply chains can lead to overproduction – driving costs up further and contributing to the industry’s high carbon emissions. 

Set up to disrupt traditional models and to offer customers sustainable luxury products at affordable prices, Soanua Limited – trading as Rise & Fall (“R&F” or the Company) – challenges the notion that high-quality items must cost the earth. 

Launched three years ago, the online retailer has achieved significant success in multiple large categories: bedding, other homewares, and women’s and men’s apparel. 

The Company uses only the highest-quality materials, including: a-grade cashmere, organic extra-long staple cotton, Mulberry silk, and Mastrotto leather. However, by partnering directly with manufacturers worldwide, reducing waste via just-in-time manufacturing, and eschewing exorbitant markups, R&F has been able to keep prices up to 80% lower than other luxury goods brands.   

R&F has more than doubled turnover every year since launch, growing sales from £1.3 million in 2022 to £3.3 million in 2023 to £7.4 million in 2024.

Encouraged by an increasing average order value and level of repeat spend (currently £110 and 35%, respectively), the Company has now launched a £4 million funding round to further accelerate expansion in the UK and overseas. 

The Company was previously backed by investors including Venrex (early backer of Revolut, Charlotte Tilbury, Just Eat, Notonthehighstreet.com, Mumsnet and ME+EM). This round is led by Guinness Ventures, which has already invested £2 million. Valued at £14.2 million (1.9x revenue), the Company forecasts sales to grow to £115 million over the next five years, generating EBITDA of £26 million – not guaranteed.

Based on these forecasts, target pre-tax return for this round is approximately 14x, net of fees and before EIS tax relief – high risk and not guaranteed. 

Please carefully read all investment documents prepared by the Company, to form your own view.

• £7.4 million annual revenue in 2024, more than doubling every year since 2022
• 48,666 new customers in 2024
• 12,500 5-star reviews
• Average rating of 4.7
• 170+ press mentions in last 12 months
• £110 average order value
• £380k invested by the founders and their immediate family
• 17 employees

This is a single company offer with no diversification. It involves investing in an early-stage, loss-making business, which is by nature high risk and prone to failure. There is a risk that the capital raised may not be sufficient to achieve the Company’s objectives. You could lose all the amount you invest.

Like all investments available through Wealth Club, it is only for experienced investors happy to make their own investment decisions without advice.

There is no ready market for unlisted EIS shares: they are illiquid and hard to sell and value. There will need to be an exit for you to receive a realised return on your investment.

Exits are likely to take considerably longer than the three-year minimum EIS holding period; equally, an exit within three years could impact tax relief. The value of tax benefits depends on circumstances and tax rules can change.

Before you invest, please carefully read the Information Memorandum which contains further details on the considerable risks – alongside the Wealth Club Risks and Commitments.

Investors will pay no direct initial or ongoing charges to invest. Fundraising costs are being met by the Company. Wealth Club will be entitled to a performance fee on exit. 

Wealth Club investors will invest using a nominee structure. This service is provided by Wealth Club’s subsidiary companies Wealth Club Asset Management Limited (authorised and regulated by the FCA) and Wealth Club Nominees Limited. Wealth Club Nominees Ltd will be completing the share subscription documentation on investors’ behalf.

Please refer to the Schedule of Charges for more details on charges (may vary for different rounds).

All the services Wealth Club and, where applicable, its subsidiaries provide are governed by the Terms and Conditions of the Wealth Club Services.

We don’t often come across consumer business that can demonstrate rapid growth, strong margins and capital efficiency as well as R&F consistently has over a three-year period.

We consider it very encouraging that the lead investor in this round, Guinness Ventures, has already invested. Furthermore, Venrex, which has considerable sector experience, remains highly supportive. Demand for affordable luxury could continue to be a growing trend. In our view, the valuation is attractive given its impressive growth trajectory and we consider this to be a compelling, albeit high-risk, EIS investment opportunity – as usual, you should form your own view.

This financial promotion has been communicated and approved by Wealth Club Ltd on 22 January 2025

Wealth Club aims to make it easier for experienced investors to find information on – and apply for – investments. You should base your investment decision on the offer documents and ensure you have read and fully understand them before investing. The information on this webpage is a marketing communication. It is not advice or a personal or research recommendation to buy any of the investments mentioned, nor does it include any opinion as to the present or future value or price of these investments. It does not satisfy legal requirements promoting investment research independence and is thus not subject to prohibitions on dealing ahead of its dissemination.