Hello Klean has secured GBP £1.5 million in debt funding to support the international growth of its water-focused consumer beauty brand. The company's funding comes from Berlin-based fintech firm re:cap and is aimed at enhancing working capital for market expansion and innovation.
Expansion plans
Hello Klean will use the proceeds to meet rising demand and expand into the Middle East as well as further European regions. The brand offers shower filters and personal care products designed to address hair and skin issues attributed to water contaminants. The new capital is also intended to support investment in filtration technology and product pipeline development.
Business model
The company operates with a subscription-based revenue model, generating over 70% of its income from regular customer subscriptions. Monthly retention rates are consistently above 97%. This approach has allowed Hello Klean to self-fund its growth, avoid equity dilution, and maintain full founder ownership. Recurring revenues have underpinned the business's ability to scale without external equity investment.
"We built Hello Klean to over 1 million sold products without taking on venture capital because our unit economics allowed it," said Omer Ozener, Co-Founder and CEO, Hello Klean. "This partnership with re:cap gives us leverage to scale inventory and international operations while maintaining ownership. Most consumer brands burn cash to grow, we grew profitably first, then added fuel."
Product development
Hello Klean was established to address the effects of water impurities on personal care. Its high-flow shower filter is engineered to reduce elements contributing to dryness and skin irritation. The company has expanded into complementary wash-off personal care products. Customer feedback has indicated improvements in hair and skin condition following the use of these products.
Company growth
Since its inception, Hello Klean has sold over one million products to more than 500,000 customers globally. The company has grown its revenues tenfold within two and a half years, entirely bootstrapped from its founders' initial personal investment of GBP £75,000.
The business operated with a lean team in its early stages, with the founders overseeing functions spanning product design to marketing. Only in 2024 did Hello Klean hire its first full-time employee. Exposure on BBC's Dragons' Den provided a significant boost, coinciding with a 700 percent increase in product demand. The company now employs 20 staff and anticipates expanding to 30 as it broadens its product offering and global reach.
Debt funding rationale
Hello Klean's unit economics enabled customer cohorts to become profitable within eight months. This made long-term debt funding more suitable than short-term lending. The arrangement with re:cap is designed to allow continued investment in customer acquisition while providing sufficient time for revenue realisation before repayments begin.
"Hello Klean has achieved what few consumer brands manage to do," said Paul Becker, CEO and co-founder, re:cap. "They scaled to over a million units sold while staying profitable and retaining full ownership. Their strong fundamentals made it possible to explore different growth scenarios on our platform and shape a funding plan that aligns strategy with capital. We are excited to support them as they expand globally."
