With Christmas around the corner, toy sharing subscription services are a great way to keep your child out of boredom and stimulate their imaginations during the tier 3 restrictions. Unfortunately, most of the parents end up spending too much on a bad toy that ends up under the kids’ bed.
Every year, millions of families across the UK spend a total of £5 billion on children’s toys only to see them go unloved very quickly. These toys clutter up homes and the majority eventually end up in landfills, claims Research commissioned by Whirli in 2019.
Based out of London, Whirli aims to change this approach by promoting sustainable consumerism, appealing directly to Millennial and GenZ parents.
Raised £4 million funding
As a result, Whirli caught the interest of venture funds for its different approach and raised £4 million Seed funding led by Octopus Ventures, with participation from MMC Ventures.
The UK toy sharing service will use the funding to expand its customer offering as well as continue investing in its proprietary technology. Notably, the company will focus on child development and learning through play, customer personalisation, and applications of data science using the ‘feedback loops’ inherent in circular economies.
Renting instead of buying
Founded by Nigel Phan in 2018, Whirli purchases toys directly from leading toy manufacturers. But, subscribers borrow toys instead of owning them. The company offers the option to swap the toy for something else at any time. Any toy that is kept for 8 months can be kept forever, at no extra cost. Or can be bought from Whirli at any time for a less-than-retail price, claims the company.
By borrowing, parents are getting far better value for money, reducing their environmental footprint, and their children are getting more varied playtime.
How safe is it?
Since the COVID-19 pandemic is out there, safety precautions are very important. In this regard, the company says, “We’re a full retail service and not a peer-to-peer marketplace. That means all toys come back to our facilities first and we sterilise them before sending them to another family to enjoy. We only stock the latest toys on the market that meet all UK and EU safety standards.”
As per the company’s claims, around 50,000 toys are in circulation right now. Unique customer features, such as Whirli’s gifting service, enable the platform to fully cater to how parents shop in this category.
Starting from just £9.99 per month, parents can choose toys from a wide range of categories and brands including Le Toy Van, Melissa & Doug, Fisher Price, VTech, Micro Scooters, and many more.
Nigel Phan, Founder at Whirli, said: “Consumers wanting to shop sustainably should not have to compromise with higher prices or greater inconveniences. We’re really proud to be at the forefront of this technology-enabled disruption that is reshaping consumer behaviour and retail. Through the power of the sharing economy, Whirli has created a winning proposition for parents and for the planet, and we are delighted to welcome Octopus Ventures and MMC Ventures on our journey.”
Rebecca Hunt, the early-stage investor at Octopus Ventures, said: “The toy market is huge, but it remains mostly stuck in the dark ages of e-commerce 1.0 and offline retail. We believe there is a real opportunity for a new entrant like Whirli to disrupt with a new approach. What’s particularly exciting is that Whirli is good for parents and the planet. By enabling parents to ‘borrow’ only the toys they need for their children’s current life stage they avoid the clutter and expense of toy ownership, while the planet benefits from removing the toxic cycle of cheap plastic toys being purchased which then end up in the landfill. The latest generation of parents are also much more comfortable with the sharing economy and recognise the benefits of borrowing rather than owning. We believe this will transcend to the toy category, particularly as more of the GenZ generation begin to have families of their own. These are trends which make now a great time to scale a business like this and we’re delighted to be working with Nigel and the Whirli team to help make it happen.”
Dele Akinyemi, the investor at MMC Ventures, said: “Whirli enables parents to make more ethical and sustainable choices in a large market that has seen limited innovation to date. We have been impressed by Nigel and the Whirli team and we are looking forward to supporting them as MMC continues to invest in companies helping to create a more circular economy.”
The post Why buy when you can borrow? This UK startup is here to reinvent toy industry appeared first on UKTN (UK Tech News).
