Soko Inc. 6

The project

Due to a tax treaty with the United States this project is only available for Dutch tax payers. Before the 1st payment we will ask you to fill in a form, to prevent SOKO for paying double taxes.

Warning

In the coming period there are different conditions for this partner. 

• The interest rate has been temporarily increased by one (1) percentage point to accommodate the growing uncertainty associated with COVID-19.
• In addition, this investee is allowed - provided they continue to comply with the applicable covenants - to refinance future repayments to Lendahand investors with the funds raised from this project.
• Repayments occur after 12 months, not after 6 months.

Basic info:

• Issuer:                                     SOKO Inc
• Currency:                                EURO
• Amount:                                  165,650 senior debt
• Maturity:                                 12 months
• Repayments:                          Annually (after 12 months)
• Interest rate:                           7.25% p.a.

Direct loan

This is a direct loan to a company (rather than lending to a financial institution) and therefore it is recommendable that you are careful with the amount you will invest. 

Documentation

Information document of the issuer

Summary

SOKO is a manufacturing platform and ethical lifestyle brand that brings together artisan communities in the developing world with consumers worldwide. The innovative supply chain uses mobile technology to connect independent artisan entrepreneurs directly to SOKO and the global marketplace. Unlike centralized factory production, they are using technology and systems design to empower human capital, not displace it.

The project

SOKO is driven by purpose—to empower marginalized artisans and the communities in which they live by preserving artisanal production techniques and cultural heritage for future generations. The working capital facility with Lendahand will enable SOKO to procure ethically sourced products which are sold through our retail accounts and own direct to consumer business Shopsoko.com. The products are sold in over 64 countries and in over 600 points of distribution across United States, Europe, Asia, Canada and Australia.

Business model

SOKO’s current revenue stream comes through two distinct channels - wholesale sales to retailers across the globe and through our Direct to Consumer e-commerce platform shopsoko.com that also ships to consumers globally. We have over 500 points of distribution in 64 different countries.

The goal in 2020 is to create an additional revenue stream through a SaaS business model. SOKO’s Virtual Resource Planning (VRP) system has enabled the integrity and ease of managing a distributed virtual supply chain; in the form of creating purchase orders, monitoring delivery of goods, managing inventory levels within the internal value-addition chain, monitoring asset loans, generating control logs, tracking deposits/payments, and tracking the financial history of each artisan.

They are in “pilot” phase with the first customer and hope to continue adding additional customers this year and early next year to continue proving the value of the technology the way they did with the SOKO brand. 

Products range

The YTD 2019 current product ranges are:

• Earrings - 48%
• Rings - 13%
• Bracelets - 23%
• Necklaces - 16%

Sales

We launched a collaboration with The Reformation - “Reformation, the " cool girl's" clothing company with stores in New York and Los Angeles, is expanding into brick-and-mortar at a time when retail brands are closing stores across America.”  

In addition, for several years we have successfully been doing collaborations with FEED and the United Nations Trust Fund (UNTF) where we have designed exclusive products for them to sell and raise money as non-profit organizations.

In early 2020, we will be launching new collaborations Zalando, Madewell and Amour Vert. All very successful brick and mortar and/or online retailers.

Target 2020

Our Sales goals for financial year 2020 is around $10m based on the base case and $6.1m based on the downside case.

Impact

• Artisans receive an average of 22% of retained revenue.
• 2,300+ artisans in 282 workshops throughout Kenya.
• Artisans working with SOKO earn 5x’s more than an average artisan workshop.
• Approximately 11,400 beneficiaries of revenue generated from sales.
• Improved artisan business and safety practices, skill development and quality.

 

Additional information on SOKO

Mission:

SOKO leverages technology to connect artisan entrepreneurs with the global marketplace.

Vision:

SOKO aspires to be a global leader in technology-enabled distributed manufacturing, catalysing a global supply chain to create ethically produced products while creating a measurable social impact in the lives of the artisan entrepreneurs and communities in which they live.

Management team

Joanne Calabrese, CEO

Before

President, Americas Region - The Body Shop

SVP/Head of Americas Region - Fossil Group

Vice President - Gap and Duty Free Shoppers

Divisional Merchandise Manager - Macy’s

Joshua Mwaniki , Managing Director

Before

Andela

Cellulant

M-Kopa

Marylene Otieno, Finance Director

Before

Barefoot Power Africa

Smart Solar Limited

KSPCA

Jennifer Nakamura, Head of Digital Marketing and Ecommerce

Before

Anki

Gymboree

Blue Martini

Viniita Moran, Director of Ecommerce

Before

SF Museum of Modern Art

Room to Read

Owl Cave Books

Hellen Savala, Head of Human Resources

Before

Samasource

Onfon

Aga Khan

Ericsson

 

Highlights or Awards

• SOKO became BCorp certified in 2019
• SOKO was chosen to participate in the Stanford Seed transformation plan project and we were one of 700 applicants and one of 65 companies chosen in East Africa