Mayo company sees valuation triple to €1.6m
Showergem has grown sales substantially since appearing on Dragons’ Den in March
Showergem’s Seán McGarry presenting his product on the BBC programme Dragons’ Den.
A Mayo-based shower accessory company has seen its valuation more than triple to €1.6 million since its founder filmed his appearance on the UK television show, Dragons’ Den.
Showergem is a shower caddy which can be attached to tiles using a transparent glue designed for wet environments. The company says its product, which doesn’t require suction cups or drilling, is rustproof. It was born out of frustration from using traditional metal caddys with suction cups that would rarely work and rust.
On its appearance on the BBC programme, Showergem secured a £100,000 investment from three investors – Sara Davies, Touker Sulyman and Tej Lalvani – in return for a 24 per cent equity stake in the business. The deal valued the business at £450,000 (€492,000).
However, since then, the company has had further offers for investment in the company, with one such offer valuing Showergem at €1.6 million.
US shopping channel
Speaking to The Irish Times, founder Seán McGarry noted that the company has “progressed massively” since it filmed the programme in March. In addition to selling through its own website and Amazon.com, the company is in discussions with US shopping channel QVC as well as UK retailers.
Showergem, which currently processes roughly three-quarters of sales through its own website, will also launch in all 24 Right Price Tiles stores over the coming weeks in the Republic.
Mr McGarry explained that the company, which has been profitable for the past two months, is on track to post revenues of about €850,000 by the end of this year with about 22,000 unit sales. Between February and the beginning of August, the company had sales of more than €450,000.
The shower caddy was originally devised in October 2015 by Mr McGarry and his father. Once founded, the product went through a three-year development and testing period before trading began in October 2018. The Irish company also has a global intellectual property portfolio consisting of trademarks, patents and registered designs.
The Showergem caddy itself is manufactured and assembled in the Republic, while the company also uses fulfilment centres in Galway and in the UK to deliver its product.
The Westport-based company now employs two full-time staff, as well as Mr McGarry, and plans to use the expertise of its three Dragon investors to gain expertise in manufacturing, teleshopping and scaling the business.
“A big thing for us wasn’t the money but the book of contacts,” Mr McGarry said of the investment committed by the three Dragons.