How Sand Cloud Grew Beyond Beach Towels to $16.1M

Sand Cloud makes sand-resistant Turkish cotton beach towels and lifestyle products from San Diego. Founded by three friends, the brand was built around a commitment to marine conservation: 10% of profits go toward protecting ocean life. Since appearing on Shark Tank, Sand Cloud has grown to $16.1 million in annual revenue, with a product range that now spans eco-friendly SPF, bath towels, and bags.

The challenge: Cash tied up while the business grows

Sand Cloud started in a San Diego loft. Three founders, a product they believed in, and a mission baked into the model from day one. Shark Tank went well. Customers found them, sales grew, and the brand built a following around both the product and the cause behind it.

Growing fast introduced a familiar problem. Revenue was strong, but cash wasn't free. Money tied up in inventory meant there was never as much available to fund the next order as the sales numbers suggested. Expanding the product line, which the brand needed to do to grow beyond towels, required larger inventory commitments, and those required capital that wasn't sitting idle.

Traditional banks didn't offer what the business needed: not the right amounts, not the right terms.

"In growing an eCommerce business, so much of the cash is tied up in inventory. It's a constant game, it's a constant grind of just, you know, having the cash in the bank."

The solution: A lender that understands eCommerce

Sand Cloud found Wayflyer, and the working relationship was different from anything they'd experienced with a traditional lender. Rather than the distance and formality of an institution assessing a borrower, Wayflyer engaged with the business as a partner that understood how eCommerce actually works.

"One of the things that I love about Wayflyer is it doesn't feel like a big banking relationship. It's personal. They understand eCommerce and how we want to spend the money."

The capital came without equity dilution. Sand Cloud kept full ownership and control of where the brand was heading, with working capital available to fund bigger inventory runs and move into new product categories.

The results: $16.1 million and a brand beyond towels

With the inventory constraint removed, Sand Cloud expanded its product range: eco-friendly mineral SPF, bath towels, bags. The brand grew from a single hero product into a full beach lifestyle range, and annual revenue reached $16.1 million.

"We're excited because we have all these great ideas and projects that we want to keep building into. To have a partner like Wayflyer that can be there for us, scale and grow with us as we do this, is huge."

Interested in following in Sand Cloud's footsteps? Wayflyer has funded over 6,000 businesses worldwide with $6 billion worth of working capital, backed by world-leading financial institutions. Apply in minutes and access funds in hours. Start your application today.