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hey circle

Seed
Co-Investors: 3
Munich, DE
Sustainability
Closing: February 2024

Summary:

  • Regulation: According to an EU regulation, 10% of all parcel shipments must be reusable by 2030.
  • Market trend: More and more companies want (and need) to make their shipping environmentally friendly and are looking into reusable packaging solutions.
  • IP: Patented solution for folding the boxes; software for handling returns with API interfaces. vfd

Personal comment

Problem

eCommerce has a waste problem. Billions of tons of waste and CO2 are generated annually by shipping packaging that is only sent once. Online retailers are looking for sustainable alternatives that their customers demand, require their own sustainability goals, and are enshrined in law. For example, with the Packaging Act, the EU is planning a 10% reusable quota for shipping packaging from 2030.

Solution

Customers of hey circle can use their reusable packaging to cut their waste by 94% and their CO2 emissions by 76%. The patented boxes are optimized for shipping and warehousing – trackable, lightweight, robust, foldable, dirt and water resistant, theft proof, brandable, and available in 8 sizes.

In connection, hey circle offeres an IT solution being able to map the entire customer journey. Return of boxes is ensured via a unique after-sales deposit model managed by hey circle.

USP (Unique Selling Proposition)

Almost every product, even fragile, large or heavy goods, can be transported using hey circles boxes. This is unlike other solutions which often focus on a special type of product such as clothing/apparel.

The tech solution via cloud is predestined as the base for an industry solution and protects against competition from the packaging sector.

Business model

hey circle rents out or sells the packaging and licenses the IT solution.

Another revenue stream is the deposit model. Due to the multiple shipments, hey circle can offer the packaging at per shipment prices comparable to disposable cartons while generating a margin of >120%.

Market

The market potential is huge: in 2027, approx. 28 million shipments will be made in the EU. Of these, about 13 million shipments are relevant for reusable packaging. The EU Commission ensures rapid growth through legal regulation, which is already being driven by customer expectations today.

Traction

  • Until now EUR 50.000 in revenue.
  • 37 customers, additional 9 testing
  • Acquired large customers like Trigema, Tchibo, Austrian Post, DRYKORN, VIU
  • Cooperation with large parcel service providers (like DHL, DPD) and logistics suppliers (Arvato, Rhenus) who are recommending hey circle (zB Trigema > DPD)
  • Generated LOIs for EUR >1.5 million in Revenue in the coming year
  • Weighted Sales Pipeline of EUR >4 Mio in Revenue

The Team

Doris Diebold

Co-Founder & CEO

Morris Kurz

Co-Founder & CTO

Rebecca Steinke

Co-Founder & COO

This document is non-binding preliminary information that provides an initial impression of the financing options offered. Neither this document nor the statements made by us in this context can be a sufficient basis for a financing decision. Investors should examine the possible investments themselves. Responsibility based on own analysis. This document does not constitute a sales prospectus, a public offer of an investment, an invitation to submit an offer, investment advice or investment brokerage. In providing this information, we make no representations, warranties or other contractual or quasi-contractual obligations, including with respect to the completeness, content or accuracy of the information reproduced in this document. This document is to be treated confidentially and may not be reproduced in whole or in part, passed on to third parties or published.

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Your Dealcaptain

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Dr. Andreas R. Boué

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Disclaimer

The scenarios determined by the investment calculator are based on empirical values and assumptions. They are intended solely to illustrate possible developments and are no guarantee of future results. The actual performance of an investment may deviate significantly from the results forecast in the scenarios presented due to a wide range of macroeconomic and microeconomic factors. Start-up investments involve a high level of risk, which can extend to the total loss of the investment. It is expressly pointed out that neither Gateway Ventures nor its partners or representatives can be held liable for decisions made on the basis of the results of this calculator. Use of the calculator is at your own risk. You should seek independent financial advice and conduct your own research before making any investment decision.

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