Pley, The ‘Netflix for Legos’ startup raises $6.75 million.
There have been some pretty amazing startup ideas, over the years, not many, a few can be quite ridiculous and makes on wonder how it was even funded or still standing for so long, This particular idea though, is definitely not one on of them Pley, formerly known as Pleygo. The startup had launched back in 2013 becoming a Netflix like business but with toys.
The company has announced that it has managed to raised over $6.75 million in a series A financial round, which was led by Allegro Venture Partners, along with help from Floodgate, Maven Ventures, Western Technology Investment, and Correlation Ventures.
Pley will be using its newly acquired capital to expand its current lineup of toys. previously, Pley was originally a rental platform for Lego toy sets. Til now, over 15,000 families have rented Lego sets from Pley, which has boasted hundreds of different sets that vary from Batman, Starwars, Chima and much more. Interfaced in a similar manner to Netflix model, Pley ships the Lego set to a Family’s house, who are allowed to keep it and play for as long as they wish to, then ship it back once they are done with it. Pley cleans and sanitizes the Lego sets with eco-friendly, child-friendly cleaning solutions and ships it off to the next family.
Ranan Lachman, CEO and co-founder of Pley, has said that the company plans to add a educational lineup of its toys, which are pretty expensive, because there nothing more annoying ten spending a pricey $200 on a single toy, and watching your child lost interest within minutes. Parents can rent toys and if their children enjoy it, they can purchase the toy at a much more reduced price than a brand new one, or they can change it for a different toy.
The company has a good set of experienced team on its hands, with Tom Dillon, Former COO of Netflix and Chegg.
While Pley may not have a partnership with the Lego company and instead operates on their own, Lachman has gone on to say that the startup has done some real good for the Lego Group.
“We conducted a comparative study among our members that demonstrated that Pley, while disrupting the way LEGO sets are consumed, is a value creator to the LEGO brand. Our members have 40% more brand awareness, as we took an expensive product that children got 1-2 times a year and brought it to their core playing activity as they get it 3-4 times a month,” said Lachman.
Lachman went on to say that Pley has actually managed to increase Lego sales by 26%.
A subscription for Pley ranges from $15 to $39, and as of now, the company has shipped nearly more than 75,000 packages.
“Pley is uniquely positioned to create a new paradigm for play as it expands to multiple toy lines for different ages,” said Julie Allegro, Managing Director of Allegro Ventures, in a statement. “As an investor and a mother, I believe that the company is solving a real problem for busy parents and this is validated by its incredible growth in a short time.”
With this round, Allegro will be joining Pley’s board of directors.