Mud Jeans is seeker investors.
The circular denim brand aims to raise 250,000 euros (approximately $270,600) in a second round of crowdfunding launched this week. The cash will be used to build brand awareness, increase online sales and scale its wholesale business. The company said it needs about one million euros in capital this year for implement its plans.
The fund-raising round is taking place on the sharefunding platform Eyevestor. Investors will receive profit sharing in the form of dividends in four to six years as the Dutch brand plans to pull all earnings back into the company to fund growth. Support levels range from a minimum investment is 250 euros ($270) to 25,000 euros ($27,060) with benefits spanning shopping credit, free jeans and membership to Mud’s thinktank. The brand will make a custom proposal for investments over 25,000 euros.
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Mud successfully raised 641,000 euros ($693,800) from 460 investors during a first round. The company plans to launch a third round if the second proves successful.
Known for its “lease a jeans” program and mission to scale 100 percent circular denim, Mud has refreshed its approach to making and selling jeans this year. The brand has made efforts to strengthen its management team and improve its assortment. The current collection offers in-demand styles like barrel jeans, wide-leg jeans, maxi skirts and coordinates. The company also launched bolder branding and a new consumer-friendly website in May.
Mud states that its goal is to achieve a revenue of 25 million euros by 2030. By 2030, the company aims to grow its retail footprint from being in 210 stores to 780 stores and increase the number of jeans it sells per year from 43,000 to 360,000—all of which will be 100 percent recycled denim.
Crowdfunding is a popular growth tool for denim brands, especially those focused on sustainable production. Outland Denim launched a crowdfunding campaign during the pandemic, raising approximately $867,919. This year Welsh brand Hiut Denim set a goal to raise 1.5 million pounds (approximately $1.9 million) from 30 indivduals to support its “no-growth” business model.
