Children’s baking company BKD secured an £80,000 investment on BBC Two show Dragons’ Den.
On last night’s episode (24 September), founder Adelle Smith agreed to give investor Peter Jones a 35% stake in her business in exchange for the £80,000.
Having originally pitched for the money in return for a 20% stake in BKD, Smith also received an offer from Jenny Campbell for 30%. However, she chose Jones due to his connections with key UK retailers, including Sainsbury’s, and previous investment in food businesses such as Levi Roots.
The pitch focused on BKD’s line of Mini Bakers Club subscription kits, aimed at children aged 3-8 years. The kits, which start at £9.99 a month, are available through the BKD website with discounts for three or six-month subscriptions. Using pre-measured ingredients, they come in an array of themes, including Minibeast Adventures and A Trip to the Big Top.
“‘Our subscription club is an area we see huge growth potential in, with this being a highly scalable part of our business and is a best-seller on our website month on month,” said Smith.
“‘I’m absolutely ecstatic to have Peter on board and the investment will allow us to massively escalate our growth. We plan to continue expanding within the UK and Ireland, via direct customer sales, retailers and supermarkets, as well as looking into European export opportunities.”
The investment will also be spent on technology improvements and extra machinery, as well as digital marketing and PR.
Jones said: “I’m delighted with my investment in Adelle and her company BKD. I’m sure both she and the business will benefit from the explosion in interest in the baking category over the last few years. I’ve already tried out the kits with my own family and we had great fun sharing the experience so I’m confident about the company’s future.”
BKD was established in May 2015 and has grown rapidly since then with revenues of £151,000 in 2017 and over 30,000 units sold. The brand’s products are stocked in retailers across the UK and Ireland, including John Lewis and Moonpig.