Castore, the ambitious British sportswear brand, has recently secured a massive £50 million in funding from a consortium of banks. This investment will help the brand expand and compete with industry giants like Adidas and Nike. The funding has also resulted in Castore’s valuation reaching an impressive £750 million. Leading banks such as HSBC, BNP Paribas, and Silicon Valley Bank joined forces to provide the additional funds, building on the £25 million revolving credit facility that was previously secured in March.

According to Tom Beahon, co-founder of Castore, the company was able to convince lenders to support the financing due to the resilience of its fitness clothing and replica kits. These items are considered recession-proof, which helped secure the investment. With the additional resources, Castore plans to strengthen its stock levels to meet the growing demand for consumer replica shirts resulting from recent partnerships. The company, which was founded seven years ago, has gained support from prominent figures such as the Issa brothers, founders of Pure Gym, and tennis star Andy Murray.

Castore has been actively expanding its portfolio of partnerships in the sports industry and already works with 10 major names. This includes renowned football clubs in England such as Newcastle United and Aston Villa, as well as Sevilla in Spain and Bayer 04 Leverkusen in Germany. In addition to football clubs, the company has secured collaborations with the England Cricket Board and McLaren in Formula 1 motor racing.

Following the successful funding round, Tom Beahon expressed his delight and highlighted that it serves as a strong endorsement of Castore’s exceptional performance, business model, and strategy in recent years. The additional liquidity provided by the funding will accelerate the brand’s international growth, positioning Castore as the leading premium sportswear brand worldwide. Beahon emphasized the potential for international expansion, particularly in the Middle East and Far East, where they plan to introduce their model to sports clubs.

Castore estimates its turnover for the 2023 financial year to reach £200 million, mainly driven by online sales. The company also expects to achieve EBITDA profits of approximately £20 million. Despite the challenging economic climate, Beahon highlighted that people are still willing to spend money, especially on items they are truly passionate about. Castore caters to this demand by offering products for sports teams with fiercely loyal fans. Beahon emphasized that purchasing the team’s shirt or jacket is a non-discretionary purchase for team sports fans, who often make the purchase at the start of the season, driven by their belief that the season will bring positive changes for their beloved team.

Useful links:
1. Castore official website
2. HSBC bank website