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True Classic

Apparel & Accessories

United States

https://trueclassictees.com

True Classic, masters in crafting apparel that enhances both look and feel, partnered with Wayflyer to weave a pattern of exponential D2C growth.

Challenge

True Classic, the golden child of ecommerce apparel, is based on a simple yet powerful mission: to make everyone look and feel good with their apparel. Starting off with just $3,000 Ben Yahalom, President, and his cofounders bootstrapped the business and oversaw a skyrocketing success to $100 million in two years.

This unique journey set them apart in ecommerce. However, True Classic faced significant challenges in expanding into new categories like activewear and penetrating over 190 markets globally. Traditional banks were hesitant to engage with them due to their rapid growth and relatively short history. In 2022, a substantial investment in activewear led to unforeseen cash flow issues, underscoring the need for a financing solution that could keep pace with their ambitious growth trajectory.

Solution

True Classic's search for an agile financial ally led them to Wayflyer, a partner offering not just funding but strategic flexibility. Wayflyer's revenue-based approach differed significantly from traditional banks, focusing on future potential rather than just historical performance. This foresight allowed True Classic to circumvent the usual need to raise capital.

With Wayflyer's support, True Classic could ambitiously invest in new categories, like their 2022 activewear line, without the typical cash flow constraints. Wayflyer's financing provided the necessary leverage to convert cash into inventory and navigate the cash conversion cycle efficiently. This partnership was crucial in allowing True Classic to experiment with and establish new product categories, facilitating continuous growth and market penetration without the burden of immediate cash limitations.

“For True Classic, Wayflyer is basically being that very flexible financing partner, very few restrictions or covenants on the terms on how and when to pull the cash out and how to use it, and really enabled us to avoid the need to go and raise capital.” Ben Yahalom, President, True Classic

Results

Wayflyer's partnership proved instrumental in True Classic's remarkable growth story. Their financing enabled True Classic to manage inventory effectively, floating cash forward until sales were realized. This strategy was pivotal in generating an additional $20 million in revenue and supporting their extraordinary 300% annual growth rate.

With only 55 employees, True Classic is achieving what typically requires hundreds of staff, underscoring their efficient, lean approach. In 2023, they matched their total lifetime sales of $207m in just one year, a testament to the power of strategic financing and operational efficiency in ecommerce. Wayflyer’s support not only fueled True Classic’s rapid ascent but also solidified their position as a frontrunner in the D2C apparel market. Their next step? There’s talk of a potential acquisition on a $1 billion valuation, a long way from a bootstrapped business with $3,000 in the bank.

“We would not be able to do that unless we had that financing partner in Wayflyer.”

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