Huddled Group PLC on Friday announced new equity funding and gave investors an update on its move to 'highly automated' fulfilment.
The circular economy e-commerce group is raising up to £730,000 through share subscription, plus up to £100,000 in a retail share offer, and it is entering into a new £600,000 debt facility, with the injection of capital intended to its growth plans. New shares are being sold at 1.75p per share, representing a discount of about 8% to the mid-market closing price on 5 February.
Proceeds will be used to increase stock levels, strengthen working capital and fund expansion into new channels such as KwikSales and marketplaces, including Amazon and Temu.
Huddled said these new routes to market are intended to sit alongside its existing brands. Recent trials on “deal” sites such as HotUKDeals and Latest Deals generated around 900 orders and approximately £40,000 in revenue in under 24 hours, with a margin of about £5 per order after all direct costs, fulfilment, postage, packaging and processing fees.
On Temu, Discount Dragon products achieved more than 650 orders in January 2026 on a limited number of SKUs, at a profit margin of about £3 per order after costs, and the company plans to add more products, brands and marketplaces such as Amazon, OnBuy and eBay.
"The move to our new highly-automated fulfilment partner was always going to be challenging; we are confident their automated solution will help us unlock and hone the potential in our business model," said executive chair Martin Higginson.
"The early signs across the new, additional channels to market is very encouraging, and whilst there is still much work to be done, we can clearly see that with more stock, and more channels to market we can begin to grow the business."
Higginson added: "I would like to thank shareholders for the ongoing support. Using the WRAP has also given us the ability to extend this funding to our private shareholder base, allowing them to take part and protect their position."
The new £600,000 debt facility, comprises a loan agreement with Higginson, covering £300,000 and two private individuals are providing the other £300,000.
The facility carries interest at 15% per year, payable monthly, with a two-year term. Half of the principal is due in equal monthly instalments in months 13 to 24, with the balance repaid on the second anniversary of the agreement, and the company has the option to repay early without penalty.
In London, Huddled shares were on the back foot, down 1.05%, changing hands at 1.88p.