A Scots entrepreneur says he doesn't regret turning down three offers from investors on Dragons' Den in his sustainable women's clothing business.
Cally Russell founded Unfolded in 2021 as a response to the wasteful practices of fast fashion companies. The Edinburgh company produces clothes based on feedback from a panel of thousands of women, claiming to reduce waste and returns.
It says its model makes fashion cheaper, guarantees better wages for workers and funds literacy efforts in India, where the clothes are made. However, Cally went away empty handed after appearing on the BBC series on Thursday, seeking £75,000 of investment from the legendarily stubborn league of investors for a two percent stake in his firm.
Clothing guru Touker Suleyman asked for 30 percent, while veteran Dragons Peter Jones and Deborah Meaden asked for 15 and 12.5 percent apiece. But Jones and Meaden scoffed at Cally's suggestion that they take four percent each, calling it an "immediate no". Jessops boss Jones quipped: "Was that a counter [offer] or was that a joke?"
Speaking to the Record, Cally said he had no regrets turning down the offers for an oversized chunk of his firm. In the end, he may have had the last laugh, as Unfolded raised over £600,000 of investment before filming the show in June 2022, and raising another £600,000 just weeks later.
He said: "At an early stage in your business it's difficult to say no to money from such fascinating and interesting people. I don't regret it but I will always pick up the phone to any of the Dragons if they want to get in touch.
"It's a very intense experience standing in the Den on a little cross on the ground you're not allowed to move from, and having questions propelled at you."
Flanked by three real-life Unfoplded customers, Cally says he underwent two hours of gruelling questions about the business, which was condensed into a single 15-minute segment. Long-term Dragons Meaden and Jones were very receptive to Unfolded's idea of reducing waste and helping customers to avoid returns by swapping orders with other shoppers.
Meaden said the company was "showing a different way" of producing fashion, while Jones called it "genius", adding: "I think you've done a lot of things right."
But in sometimes tense exchanges, the other Dragons hauled Cally over the coals. Craft supplies entrepreneur Sara Davies, questioned the green credentials of a company producing clothing in India and flying it back to the UK, despite Unfolded 'carbon-offsetting' the flights to neutralise the environmental impact.
She told the businessman: "I feel like you're pulling the wool over my eyes trying to claim this massive level of sustainability." Suleyman – owner of shirtmakers Hawes & Curtis – compared the hem of the dresses to "waves over the Atlantic" while Diary of a CEO podcaster Steven Bartlett said of the firm: "I don't think I need you."
Cally added: "I expected it to be a difficult conversation but there was a lot of positives in it – Peter Jones said it was genius, Deborah Meaden said some really powerful things. We couldn't do a deal but I'm still taking it as a very positive experience.
"Going into the Den isn't for everyone – you need to know your numbers, know your stuff, and be confident in articulating that. At the end of the day we went in and got three offers, and not many people can say that."
The encounter was also his second with the Dragons. Cally first appeared on the programme in 2015 looking for investment in his 'Tinder for clothing' app, Mallzee, but rejected the Dragons' offers then too.
Mallzee went on to fold during the coronavirus pandemic – something that Peter Jones, who had made an offer, made sure to mention. He told Cally in Thursday's episode: "Thank you for rejecting the offer."
Thursday's episode of Dragons' Den can be watched on BBC iPlayer.
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