Home organization brand Neat Method to raise money this year
Home organization retailer Neat Method is raising capital this year, likely from angel investors, CEO Ashley Murphy tells Axios exclusively.
Driving the news: The company is celebrating one year since its founders bought back the business from previous owner Whitmor.
Of note: Even as other more established home organization retailers struggle, Neat Method sees an opportunity to consolidate the fragmented luxury space, Murphy says.
Details: "We have a few things in the pipeline for this coming year. More in the angel investor realm," Murphy elaborates.
- An investor with knowledge of products and expanding internationally would be ideal, plus there is an opportunity to increase its marketing.
- She declined to comment, however, on the amount.
Flashback: Neat Method was founded in 2010 by Murphy, Marissa Hagmeyer and Molly Graves, who all remain owners.
- It sold a majority to Whitmor, a Mississippi-based maker of organization products, in 2017, which valued it at $1 million.
- The company's valuation has since grown to $15 million.
Catch up fast: Once the founders reacquired the stake a year ago, they had to go through the process of de-integration, which meant securing their factory and warehouse.
- "The fulfillment center transition along with some integral customer service updates have set us up for even more success for 2024," Murphy says, which will help the company process orders faster.
How it works: Neath Method provides luxury home organizing and relocation or moving services as well as organizational products.
- While services and design are at the center of the business, products will eventually become a majority of sales.
- It has franchisees in more than 95 cities and adds between 15 and 20 of those per year, but doesn't operate any stores.
By the numbers: The cash-flow positive company's revenue grew 15% year over year in 2023, Murphy says.
- It was on track to generate some $15 million in sales tied to services alone last year.
- The growth is due in part to new retail partnerships struck with West Elm and Crate & Barrel last year, joining a list that includes Bloomingdales, Nordstrom and Saks.
What's next: Neat Method is expanding into hospitality, with a handful of boutique hotels offering the company's products in their guest rooms.
- "Our product team plans to launch around six new collections which will expand Neat into new areas of the home," Murphy adds.
- It also sees an opportunity to partner with retailers who have an increasing interest in the home organization category via services.