Expression of Interest

Breakaway Aussie e-commerce platform disrupting the global bedding and skincare industries.

  • Type: Retail

Breakaway Aussie e-commerce platform disrupting the global bedding and skincare industries.


Register your interest for updates and exclusive first access to Silvi's investment offer.

    Overview of Silvi

    Tired of random breakouts, stubborn acne, and those big, red pimples that come from nowhere, we wanted to stop bad skin days at the source. Specifically, we wanted to create something effortless, truly effective and could complement your existing skincare routine while also being affordable. 

    So, after 18 months of research and testing, we came up with Silvi - the world’s first silk pillowcase treated with natural silver (and plant-based silk option), backed by science to eliminate 99.7% of acne-causing bacteria. 

    With an emphasis on skincare benefits combined with high-quality products, we entered the Australian market in October 2020. Despite operating in a niche space, we received immediate traction. In just over 11 months, we’ve generated over $5m in sales, primarily from our silk pillowcases. Demand has been so strong that we have sold out six times. Since then, we have expanded our product range to also provide silk bed sheets, duvet covers and sleep masks. Additionally, in the pursuit of product quality, sustainability, and product margin, we recently introduced Bamboo Lyocell - a cheaper and innovative material alternative that has similar properties to silk. 

    Our founders Max and Ben have experience in scaling e-commerce and marketing businesses, Ben with a 7-figure exit in Pod & Parcel, Max with Australia’s number one ranked digital marketing agency Megaphone Marketing, which has been bootstrapped to over $20m in value - together they have the vision to be the global leader in functional bedding & fabrics for skincare & beauty – achieving $100-200m revenues.

    Pillowcases are just the first product in our journey. Our highly scalable business model and healthy margins lend themselves perfectly to business expansion. Along with multiple product expansions in the pipeline including towels and sleepwear, and later in high margin subscription skincare range & beauty supplements, we aim to further Silvi’s rapid growth by entering other markets including Canada (current), and the UK and US after that.

    Investment Highlights

    1. Unique product backed by science

      Our silver infused silk and bamboo is the world’s first, clinically tested within a certified lab to eliminate 99.7% acne-causing bacteria. We promise our customers with less acne & breakouts, and noticeably cleaner, clearer, healthier skin in only 30 days (or your money back). Additionally, all our products are ethically made (Oeko-Tex® certified) and are not tested on animals.

    2. Immediate traction and profitability 

      We have generated $5m revenue and $2.1m in gross profit in just 11 months. We’ve also managed to deliver $283k in net profit over that same period, an incredibly rare achievement for a high growth e-commerce business. Overwhelming demand saw us sell out six times demonstrating that our first year revenue and profit could have been even more impressive, with our current annualised run rate at $10m+. Our healthy and profitable margins separate us from our peers and we were able to achieve an average order value of $130 with an average gross margin of 49% across all our products. 

    3. Highly scalable with multiple expansion avenues

      Our lean operation model makes us a highly scalable business with multiple growth avenues including product expansion and new market entry. Currently, we are planning to expand into towels, sleepwear and later into subscription-based skincare range & beauty supplements.

    4. Proven international appetite

      Following our initial success in the Australian market, we have since expanded internationally by entering into the Canadian market, and are currently exploring entry into the US and UK. Globally, the skincare market is valued at US$140.9B (growing at a CAGR of 4.8% for 2021-26), while the bedding industry is valued at US$73.9B (growing at a CAGR of 9% for 2021-28).Ultimately, our vision is to become the global leader in functional bedding & fabrics for skincare & beauty – achieving $100-200m revenues by 2026.

    5. High customer satisfaction and strong referrals

      Our products are not only clinically proven but also backed by strong customer reviews and a high satisfaction rate. Exemplified by an average return rate of 0.9% in AU and an average 92% customer rating for over 1000+ reviews, where the only negative feedback originates from products being out of stock. Furthermore, ~30% of traffic sessions & revenue are generated outside of paid marketing, signalling our strong customer referrals.

    6. Stellar management team with a track record of scaling startups

      Our growth is underpinned by our strong and diverse leadership team. This includes our co-founders Max Hertan and Ben Goodman, both equipped with deep expertise in startups across a range of industries. Max is a founder of award-winning social media marketing agency - Megaphone Marketing, where he leads a team of 130 to achieve annual revenue over $15m. Ben founded Pod & Parcel, an award-winning coffee pod retailer, and led a group of 5 to achieve a $5m run rate at exit.

    The Problem and Solution

    Acne affects up to 50 million in America alone annually and 85% of people will suffer from acne during their lifetime. The four biggest contributors to acne and skin issues are stress, hormones, diet & our environment. 

    Dirty pillowcases are the primary culprit behind most breakouts. Over the course of a few days, dead skin cells, oil, and bacteria can build up on the pillow’s surface, causing acne & skin inflammation. Our faces spend approximately one-third of their lives on pillowcases and sticking to the recommendation of switching your pillowcases every two or three days can be a hassle. Thanks to quarantine and working from home in the foreseeable future, the amount of time we are spending in bed has also increased, and experts are now recommending us to change pillowcases every other day. 

    This is where Silvi comes in. By using a scientifically backed solution, Silvi helps you regain beautiful, naturally clear skin in an affordable and effortless manner by stopping breakouts at the source.

    Market Opportunity

    Silvi operates in the intersection of two markets with significant broader opportunities: skincare and bedding. The global skincare products market was valued at US$140.9B in 2020 and projected to grow at a CAGR of 4.7% during the forecasted period 2021-2026. The COVID-19 pandemic has negatively influenced consumers’ spending habits that led to a slight decline in the market growth in 2020. Nevertheless, the beauty and skincare industry has responded positively by shifting focus onto e-commerce sales, which escalated quickly during the pandemic. 

    Within the skincare industry, acne care also represents a large growth opportunity. The American Academy of Dermatology Association has found that approximately 85% of people between the ages of 12 and 24 experience at least minor acne, with it occurring at any stage of life including adulthood. 

    The bedding industry market size was valued at USD 73.9 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 9.0% from 2021 to 2028. The increased work-from-home hours caused by the pandemic has reoriented people’s spending budget towards homeware, which includes sleep setups. As of 2020, the bed linen holds the largest share of 31.6%, these include bed sheets, bed covers, duvet covers and pillowcases. On the consumer end, the industry is seeing a rapid shift towards quality and sustainable linen for healthier beds, greater comfort and durability. 

    Operating synergistically within the two markets, Silvi’s product offering fills a market gap and provides great quality that exceeds customer expectations. The dual focus on skincare benefits and premium bedding positions us at the forefront of innovation, ready to capitalise upon the rapidly growing market opportunities.

    Why Equity Crowdfunding

    Our customers are at the centre of our operations. We chose to raise funds through equity crowdfunding to give our customers - our key stakeholders, a chance to participate in our growth journey. We see this as an opportunity to give back to our loyal community as we celebrate all future successes together. 

    One of our core values is being ‘inclusive’. Thus, having our early supporters as co-owners at this stage just made perfect sense, as we continue to uphold our core values while remaining community-focused.