Skiwear and outerwear brand Faction has received a £4m cash injection to invest in its global expansion.
The brand closed the deal last December with 40 existing investors and 39 new investors. The alpine brand also successfully crowdfunded its target of £500,000 through Crowdcube. Since it was launched in 2006, more than 400 investors have invested, including more than £10m from angel investors.
Faction is based in Verbier, Switzerland, but its executives, international sales and operations are based in London. It has 28 full-time employees.
Faction sells its products in 35 countries, including Austria, Sweden, Japan, China, Switzerland, France, Russia, and Norway, as well as Lebanon and Dubai. Its strongest growth is in France, the USA, Switzerland and Austria, but it is looking to expand further in Japan, China and Scandinavia. Some of its retailers include Blue Tomato (Austria), Jennewein (Germany), Au Vieux Campeur (France), EVO (US) and Rhythm Japan (Japan). Stockists in the UK include Ellis Brigham, Snow + Rock, Freeze, Surfdome, Finches and Absolute Snow.
Faction delivered €5m (£4.4m) in revenue in the first half of this financial year beginning 1 April. EBITDA losses also halved to €700,000 (£610,000) in the same six months “as investment continues in building a global sales operation”.
Faction chief executive and co-founder Alex Hoye said: “Faction’s DNA since inception has been to do things better and differently. Faction’s goal is not to become a mass market player, losing margin and quality for market share. With a lean, global infrastructure, we can achieve scale with strong profit margins with less than 3% market share and will exceed its ambitions if our fans continue to prioritise quality and experience.”