Defunc is a Swedish brand that creates purposeful audio products to simplify choices for sound-savvy personalities around the world.
Defunc launched in 2016. When they started MONDO, they found a gap in the market: a lifestyle audio brand targeting a young, global audience with a focus on fashion.
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Defunc is a Swedish brand that creates purposeful audio products to simplify choices for sound-savvy personalities around the world.
Defunc launched in 2016. When they started MONDO, they found a gap in the market: a lifestyle audio brand targeting a young, global audience with a focus on fashion.
Defunc creates audio products with simple design and great functionality at an affordable price. The true wireless segment is very competitive, and founder Johan Wahlbäck decided to branch out to a new vertical, premium audio, when he launched MONDO.
Defunc has been focused on offline sales through distributors while they open their online stores. MONDO is an omnichannel brand, and plans to build direct sales and invest in paid ads to acquire customers and brand awareness, creating a synergy between online and offline channels.
“One of the biggest challenges is that you can't sell what you don't own. If you sell more, you need to produce more. And you need money to finance that,” says Johan.
With challenging lead times for production and transportation causing a tangible strain on liquidity, they needed a financing solution to bridge the gap between creating the product and selling it.
“The lead times for transportation from Asia, where most of the products are being produced, are especially challenging,” says Johan.
“It used to take about 30 days, now it takes about 60. The lead time to actually book a place on the boats has increased too. That causes even more strain on the liquidity.”
But, they were facing the same issue as many other commerce brands: traditional banks didn’t understand the needs of their business, and couldn’t finance their growth. With Juni, they have a partner that was built to support businesses like Defunc.
“It was an easy choice. We needed to finance our inventory in order to supply our customers, and we can do that with Juni now,” says Johan.
With a combination of Invoice Credit and Juni cards, Juni provides Defunc cash flow support to manage inventory and boost liquidity while remaining profitable.
Managing inventory well is crucial, especially during high-demand periods like Black Week and gifting season. Financing from Juni helps maintain inventory levels without affecting liquidity, allowing for strategic planning to boost their margins.
Defunc’s main cash flow gap is during the transportation process. Shipping inventory by sea takes longer, but has better margins than by air. Boosting their cash flow with Invoice Credit has allowed Defunc to choose cost-effective transportation to increase their margins. They make a high order in advance, and can afford to wait while it’s shipped by sea thanks to Juni closing their cash flow gap.
“When we ship by sea our margins are 35% higher compared to air,” says Johan. “The additional cash flow from Juni lets us put more products on the sea without risking our cash flow.”
Invoice Credit is designed for commerce businesses like Defunc, unlocking flexible financing powered by our Accounts Payable feature. Pay any invoice and extend your repayment terms, easing complex cash flow cycles.
Easily handling expenses with Juni cards and a clear oversight of their inventory spend has given the team better control over their finances.
“We mainly use Juni cards for travel expenses. We get quite a high burn rate because growing internationally means a lot of travel,” says Johan. “Having everything in one place, from travel costs to inventory spend, is very beneficial.”
Defunc are expanding across the globe. With Juni, they have a partner that supports them as they grow with accounts and cards in multiple currencies and fixed FX fees, while continuing to provide that essential cash flow boost.
"We plan to launch in new countries, and the flexible credit line is very important for us,” says Johan. "Juni is the perfect fit for us.”
Defunc creates purposeful audio products to simplify choices for sound-savvy personalities around the world. Uniting Swedish design thinking with carefully selected forward-looking functions to create stylish headphones and speakers.
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