Published on the 06/07/2015 | Written by Donovan Jackson
Pets aren’t being left behind in the march to the subscription-based digital economy…
Subscription service Bow Wow Box delivers tasty treats to pooches across New Zealand and it is seeking to expand operations through an equity crowdfunding campaign on PledgeMe.
In a chat with iStart, founder Andy Evans said he has been in the dog business for over ten years with a related company, Guardians Dog Minding. “I realised that for many owners, it is difficult to find good quality treats; then I came across Bark Box in the United States, which has around 250,000 subscribers who get a monthly box delivered for their pet.”
That was some 18 months back. “I thought New Zealand and Australia needed something similar, and, with a few good contacts in the industry, gave it a go.”
From its launch at the end of last year, Bow Wow Box has grown to 400 subscribers and has delivered over 4,000 boxes to date; Evans said with the concept proven, the time has come to take things to the next level. “It’s one thing to grow organically, but we need to get to the tipping point of a thousand subscribers.” At this point, he said economies of scale will take hold, reducing the overall cost of putting the Boxes together.
“We’re looking to raise between $75,000 and $225,000; all of that money will go into driving market reach, so, sales, advertising, marketing and public relations. As a result, the expectation is that there will be immediate benefits for investors from that funding round.”
For those who may remember the dotcom bubble and the prominent role played by the ill-fated pets.com, Evans volunteered further insight. “Starting this type of business wouldn’t have been possible five years ago, but now with APIs you can integrate a website and subscription back ends which allows us to do it.”
Asked why funding is being sought through PledgeMe specifically, he said, “The company sees shareholders not just as putting in dollars, but as ambassadors. PledgeMe is a way for us to reach out to Bow Wow Box customers and make them part of the story.”
Of course, the internet is all about cats, not dogs. Feline aficionados needn’t feel left out, as Evans added that the cat equivalent is on the cards, with the imminent introduction of the Meow Wow Box.
The company believes it can reach 5 to ten percent of New Zealand’s 700,000 dog owners, giving an addressable market of around 35,000 to 70,000 boxes a month. “This will then allow us to expand into Australia,” said Evans.
In a statement Bow Wow Box, operated by Delivered 2 You ltd, said its funding goal is equivalent to between 5.3 and 14.3 percent of the company. Shares are $1 each and the minimum buy is $500.
PledgeMe’s ‘equity champion’ Will Stewart said Bow Wow Box has passed its proof of concept stage and is ready to bring the service to the wider New Zealand pet market. “Andy’s experience and passion lies on the pet industry and it’s exciting to see his business positively impact Kiwi dogs and their owners.”
The campaign closes on 9 August. View or participate here.
