Founded in 2010, Soapbox embarked on its mission to empower individuals to positively impact the world through their everyday choices in personal-care products. As a subsidiary of Impact Driven Brands (IDB), Soapbox operates as its flagship brand within a broader framework of portfolio companies dedicated to global betterment. The company’s core focus resides in the production of high-quality, naturally sourced, environmentally conscious soaps, hair care solutions, body washes, and lotions.
At the heart of Soapbox’s operations is its commitment to social responsibility and environmental sustainability. Collaboratively with IDB, the company looks to help underprivileged regions across the globe. Through its partners in Honduras, Cambodia, Africa, India and the US, Soapbox looks to expand its footprint while giving back through fostering hygiene education and helping develop local soap production and recycling efforts. For every soap product purchased, one bar of soap is donated to disadvantaged communities, an effort that has thus far amounted to an impressive distribution of over 34 million bars.
Recognizing the Opportunity in Personal Care
The cosmetic and personal care industry in the United States, valued at $92 billion, has undergone significant expansion due to a heightened awareness of the risks posed by sun exposure and an increased emphasis on maintaining youthful appearances. Globally, the skincare sector alone is projected to amass $177 billion by 2025. Soapbox expects this societal shift to contribute to the growing demand for its entire suite of products.
Establishing a strategic niche based on demand, principal, and quality
Through the deliberate targeting of mass food and drug store retailers like Walmart, Kroger, CVS, and Costco, Soapbox has emerged as a rapidly growing brand in the body and hair care segment. The brand’s emphasis on wholesale distribution is tailored to meet the discerning preferences of a customer base that prioritizes environmental sustainability and health consciousness, while still seeking affordable yet notably superior alternatives.
This strategic decision is complemented by leveraging the digital channels of its retail partners and building a strong relationship with Amazon. Soapbox not only streamlines advertising expenditures but also circumvents a race-to-the-bottom pricing competition, enabling the company to dedicate its resources to ensuring product excellence. Soapbox’s leadership believes this calculated stance fosters a competitive and market share-grabbing ecosystem, positioning Soapbox for continued growth and impact within the industry. A story backed by a history of continued revenue growth from $4.9M in 2019 to $12.8M in 2021 to a projected $23.3M in 2023.
Taking Advantage of a Refinancing Opportunity
The opportunity presented allows investors to tap into a Future Receipts Purchase Facility Agreement between the sponsor, Hum Capital, and Soapbox. This type of senior secured facility provides Soapbox financing through the purchase of their receivables, future receipts, and revenues, with a full lien on all assets of the company including inventory and IP as well as guarantees from three other subsidiary brands.
Via the note offered on the platform, Percent investors will gain access to participate in this line of capital issued to Soapbox, which serves as a growth and working capital facility. This initiative serves the goals of facilitating growth and addressing essential working capital needs, which encompass marketing and inventory expenses.
With Soapbox, Percent investors will also gain further access to compelling ESG opportunities with a company that is moving the needle toward a healthier and environmentally sustainable future by way of growing concern for personal care.
ICM as Co-Investor
Hum Capital’s internal Strategic Capital group which manages investments according to the underwriting criteria of a large US Life Insurance company through its ICM vehicle is an investor in the underlying Future Receipts Purchase Facility (since December 2022) and continues to be the majority investor after this offering. Soapbox is a core position in the portfolio of ICM. The company has consistently met expectations and has performed in all capacities.
Investment Merits
- Approximately 2x coverage through inventory and accounts receivable
- Over 100% revenue growth year-to-date through July 2023
- Prior strategic interest in the company at a take-out acquisition price at many multiples of the amount of the financing
- Company has already demonstrated the ability to operate profitably
- ESG-applicable
- Potential value and guarantee from other brands