Covering the start-up's cash flow needs with regard to inventory and customer acquisition
Poiscaille, the seafood equivalent of a box or basket of vegetables, has a pressing need for cash flow. Transport, specific packaging, and the payment of fishermen within seven days represent a significant output of more than 50% of its revenue. To help it grow, Silvr finances the start-up's inventory and acquisitions. Let us tell you all about it!
Poiscaille is the seafood equivalent of a box or basket of vegetables. Directly from the fishermen, from Fécamp to Bastia, and without going through middle men: it offer the very best fresh fish, shellfish and crustaceans, and always in a sustainable and ethical way.
These seafood trays can be used to prepare a meal for 2 to 3 people. You receive 1kg of fish, 2kg of shellfish and 1.5 kg of crustaceans or mixtures from the catch of the day.
The price remains fixed regardless of the contents. One time it's lobster, or sea bream and scallops, and another time it's beautiful pieces of fresh mackerel or mullet. It's enough to make your mouth water!
Charles is the founder of the start-up. An engineer in marine resources management, he worked for seven years in the fisheries section of the French Ministry of Agriculture. He so happened that he dealt with the subsidies granted to large-scale fishermen who did not respect sustainable fishing and environmental protection methods. He then decided to create his own little universe where the fishing industry and its consumption are respected. He was taken for a dreamer, but he gave himself the means to realize his ambitions and immersed himself on trawlers for several months to understand their business and to come up with his own solution.
Poiscaille’s mission is to pay fishermen to support them as they fish in a more sustainable manner that respects the environment. In concrete terms, Poiscaille fishermen are paid 20 to 30% more. For €20 tray, Poiscaille pays €10 to the fishermen, compared to €3 to €4 in traditional channels.
Poiscaille is 180 fishermen with sustainable practices on the French coast. By adapting to the day's fishing instead of demanding a particular product, the start-up enhances the value of species and protects the environment. Better paid, they can fish less and earn as much.
"If we didn't have the short circuits, we would have to work more, do more volume, burn more fuel, we would be more tired. We would have less family life, we wouldn't have time to do anything else.
Breandan, Poiscaille fisherman
To ensure a short local supply circuit while paying fishermen properly, Poiscaille finds itself with a pressing need for cash flow. Transport, specific packaging, and the payment of fishermen within seven days represent a significant output of more than 50% of its revenue.
In addition, to avoid waste, Poiscaille has started to produce canned products. This enables them to add value to all fishing products and therefore to the fishermen without any loss.
Poiscaille has also acquired a warehouse which gives them the possibility to increase their storage capacity. The financing of all these developments was not possible through the cash flow generated by the activity alone.
The company then applied for a seasonal overdraft facility of €100,000. After a battle of more than 6 months, the bank finally granted it, but this does not cover all the start-up’s needs.
Before Silvr, Oksana, the company’s finance manager, did not think that there was a speedy solution to financing inventory. She had trouble believing that a French solution that allowed you to finance your growth in 24 hours existed!
With the Christmas season approaching, the company was about to receive a high number of invoices related to the manufacture of preserves that would have created a big hole in its cash flow. The inventory costs were therefore reduced, enabling Poiscaille to pay for other expenses without any problems.
”We had negotiated schedules with our manufacturer. Thanks to Silvr we were able to pay our invoices in one go and thus restart manufacturing with him.”
Charles Guirriec, CEO
In addition, Poiscaille is keen to develop its range of canned products. It must therefore increase its production capacity and its purchase of raw materials.
"It's in our interest to buy in bulk to save on the unit price from our suppliers. Without Silvr, our cash flow doesn't allow us to do that."
Charles Guirriec, CEO
After signing an initial €550K inventory financing agreement with Silvr, the company realized that it was facing another challenge: acquiring new customers.
At the beginning of its adventure, Poiscaille was fishing for subscribers via word of mouth. But today, natural acquisition has been saturated and there are many other players appearing on the horizon. The teams were therefore obliged to invest heavily in their digital campaigns and applied for €150K in Silvr funding.
”By financing our acquisition campaigns, Silvr has enabled us to support our growth and optimize our production and logistics costs.”
Charles Guirriec, CEO
1,000 boats and thus ¼ of the French fleet, which will enable the company to have a direct impact on overfishing and on the protection of marine species.
In 2023, Poiscaille's ambition is to expand its regional network and to seek subscribers in smaller towns. In 2023, Poiscaille also aims to be profitable!
The company is looking to raise equity in the next few months to give a little extra impetus but has no desire to dilute its capital too much.
Silvr is then the perfect long-term solution to reduce expenses and better manage the start-up's cash flow, especially during seasonal peaks.
"Silvr immediately understood our issues and adjusted their offering to our constraints. A partner we want to bring on board as we grow!"
Charles Guirriec, CEO
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Published on
March 27, 2023
By
Sophie
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