The Patch Plant Effect - A Deep Dive into the Business

Welcome back lads and ladies!

I’ve decided to take a bit of a different approach. I have an attention span of a goldfish, and maybe you do too… So, lets keep it short, informative, and (hopefully) inspiring to my entrepreneurs and founders out there.

Before we start, as per usual, here’s a brief look at the M&A news of last week to see which founders have successfully sold their empire:

Was that really really boring, or not??? - Let me know. Seriously, tell me. Now then, lets goooo…

From a barren balcony in London to flourishing gardens across Europe, Patch Plants has cultivated a remarkable growth story. Founded in December 2015 and blossoming into the market in May 2016, Freddie Blackett and Ed Barrow's vision has transformed the windowsills of European city homes.

The Seed of an Idea

In 2015 Freddie Blackett and Ed Barrow living in London found it hard to find garden centres and online shops that delivered plants (without being mangled in transit). Unlike my own constant cycle of buying, killing and re-buying plants, Freddie and Ed had a bit of a passion for plants and hence wanted a more accessible option to getting them.

This “lightbulb'“ moment led to the inception of Patch Plants in December 2015. Quite a simple hinderance became a mighty company across the entirety of Europe from this very issue. But not without the challenges which became ever more clear after launching to the public in May 2016.

Early Hurdles:

In the early days, Patch Plants faced significant logistical challenges associated with delivering delicate living plants. To ensure the quality of their products upon arrival, Freddie and Ed made the crucial decision to build their own delivery network by hiring their own drivers. While adding complexity, this demonstrated their commitment to their customer and delivering plants that you could kill, not them.

As the company experienced rapid initial growth, they encountered operational strain. An incident involving one of their few delivery vans being stolen underscored the vulnerabilities of scaling quickly and highlighted the need for robust operational systems.

Branching Out:

A pivotal moment for Patch Plants arrived in 2019 when they launched an equity crowdfunding campaign on Crowdcube. Aiming to raise 500,000 GBP to fuel their ambitious growth plans, they were met with overwhelming support, securing over 1.8m GBP from more than 2,400 investors. This successful campaign provided crucial capital whilst also validating the strong belief in their vision and market potential.

The capital received from the crowdfunding enabled Patch Plants to embark on their European expansion. In May 2019, they took their first step onto the continent, launching in Paris. This strategic move targeted a significant European gardening market that was predominantly offline at the time, presenting the ideal moment for growth.

Continued European Expansion:

Following their successful entry into the French market, Patch Plants continued their European rollout. They launched in Berlin in June 2020, further solidifying their presence in key European urban centres. This was followed by their expansion into Amsterdam in September 2021, demonstrating their commitment to establishing a strong continental footprint. The Amsterdam launch was notably supported by a dedicated 10m EUR funding round, highlighting the strategic importance of the Dutch market.

Significant Growth and Customer Focus:

By 2020, Patch Plants had achieved significant milestones. They had successfully delivered over 250,000 plants to more than 82,000 customers across London and Paris. Their commitment to a customer-centric approach was evident in their personalised service, offering comprehensive plant care guides and a dedicated team of "Plant Doctors." This focus on customer support fostered loyalty and contributed to their impressive growth. Financially, the company reported a remarkable 124 percent revenue growth in 2020, reaching 4.48m GBP. By this time, they had raised a total of 6m GBP to support their ongoing expansion efforts.

Sustained Growth and Further Funding:

Patch Plants continued its strong upward trajectory, reporting a significant 130 percent growth in 2021, demonstrating the sustained demand for their online plant services. In 2023, the company secured a substantial 10m GBP in funding. This significant funding was specifically aimed at supporting their ongoing expansion across Europe, underscoring their ambition to become a leading player in the European online plant market.

A Thriving Ecosystem:

Currently, Patch Plants stands as a testament to the power of identifying a personal frustration and transforming it into a thriving business. From Freddie Blackett's initial balcony woes, the company has grown into a significant force in the online plant market. Their unwavering focus on customer experience, coupled with their innovative approach to plant retail and delivery, positions them well for continued victory in the ever-growing green economy.

Next week we have a special guest who has allowed us to write about their real life story of their web development business. From becoming a DJ to successfully selling their web design service.

Good Reads & Recommendations:

I’m not pretending to be the ultimate effective human and read a book every week. So instead, I wanted to tell you about the journey I am going to be taking - making everything incredibly transparent. From how well the newsletter is growing, as well as all of the things I have been doing to help that growth. Every week I am going to publish these stats on my Instagram and X (links below). So, if you want to follow along and see how to (hopefully) grow a newsletter in real-time. That’s where you will find it.

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I am always on the hunt for an interesting and disrupting company to write about. So if you run a business and are open to an interview, reply to this email. Let’s discuss…

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