Story Highlight
– Subdial secures $20 million funding for expansion in America.
– Christy Davis to lead new U.S. operation in 2027.
– UK sales surged by 80%, annualised at £70 million.
– Subdial plans significant U.S. presence, targeting New York launch.
– Over 40% of sales from repeat customers, strong community focus.
Full Story
British luxury watch retailer Subdial has successfully secured a $20 million funding package aimed at fueling its rapid growth in the UK and facilitating its expansion into the United States, set to occur in 2027.
Co-founder Christy Davis will spearhead the new US initiative, which will feature a facility inspired by Subdial’s London Clubhouse, a robust team, and its own inventory of high-end watches.
The investment includes a Series B equity round, primarily led by Gresham House Ventures, alongside contributions from existing investors such as Active Partners and Watchfinder founder Stuart Hennell, as well as a financing arrangement from a prominent UK lender set to be finalised soon.
This development follows a report from WatchPro highlighting that Subdial’s UK sales soared by 80% in the last financial year, while global turnover surged by 64%.
According to Subdial, if sales from October 2026 were to be annualised, they would indicate a total turnover of £70 million, signifying a year-on-year growth rate of 74%.
The company further noted that its trading is currently approaching an annualised rate of £70 million ($100 million), reflecting a 74% increase compared to the previous year as of October.
In an exclusive discussion with WatchPro, Davis clarified that the $100 million figure reflects the annualised value of watches traded through the platform, distinct from the accounting turnover that accounts solely for Subdial’s commissions on consignment deals.
For the fiscal year ending January 31, 2026, Subdial recorded a turnover of £21.6 million and a total transaction value reaching £35.9 million.
While operating losses decreased from over £1.1 million to £231,000, Davis mentioned that the business has been profitable since early this year.
This prompts the question of why additional funding is required when the company is already seeing profitability and strong growth.
Davis elaborated that the new investment will enable Subdial to accelerate its expansion efforts significantly beyond what could be achieved through reinvesting profits alone.
Rather than waiting for retained earnings to accumulate, the firm plans to invest heavily in inventory within a condensed timeframe.
Hennell, who invested in Subdial last year, supports this approach. As the founder of Watchfinder, he emphasised the potential hazards of fostering a reliance on multiple funding rounds without establishing firm commercial foundations. However, he appears confident in Subdial’s operational competency and customer relationships as a strong foundation for scaling.
“This is my second investment in Subdial. Christy and Ross have built the business on the right fundamentals and a solid core commercial model. They’ve got the opportunity to go beyond where I took Watchfinder, to the next iteration of watch trading,” he remarked.
While expanding into the US, Davis insists Subdial is not outgrowing its domestic market. He shared that the company’s strategy projects nearly a doubling of turnover in the UK within the next year.
“Our aim is close to 90% growth over the coming 12 months in the UK,” Davis stated, characterising this goal as ambitious yet attainable.
He remains optimistic about Subdial’s potential to establish itself as the UK’s foremost pre-owned luxury watch trading entity, particularly in light of Watchfinder & Co.’s sales of £110 million for the financial year ending March 2025.
Subdial’s mission is to facilitate more frequent trading among collectors by alleviating the cost, inconvenience, and uncertainty traditionally associated with buying and selling watches.
Davis noted that persuading collectors to increase their trading frequency from two to three times a year could lead to a 50% market growth without needing new customers.
Key to this approach is Subdial’s focus on cultivating long-term relationships with watch enthusiasts, rather than functioning as an impersonal online marketplace. Currently, repeat customers account for over 40% of Subdial’s sales.
The Clubhouse, located in Farringdon, plays a crucial role in this strategy, hosting around 30 customer appointments per day and various events, including exhibitions and media productions.
It has also become the centre for Subdial’s engaging digital content, such as the Watch Drop videos and the Good Times YouTube series, fostering a community that extends beyond its immediate customer base.
In expanding to the US, Subdial plans to replicate its successful blend of digital commerce, content creation, community engagement, and physical retail.
Davis assures that the American launch will be a significant endeavour, not merely a trial with a small office. “We’re looking to do the US in a significant way,” he expressed.
The intent is to establish a Clubhouse in the US with a comprehensive team right from the start, mirroring the infrastructure and customer interactions that have thrived in London.
While the exact location is yet to be confirmed, New York City remains a strong possibility for a launch targeted for 2027. Davis will oversee the American operations with his family relocating, while co-founder Ross Crane will manage the UK operations.
This dual leadership approach aims to ensure both markets receive the necessary attention during this phase of rapid growth.
Davis indicated that Subdial has already garnered significant brand recognition in the US, with its YouTube content attracting more viewers from the country compared to the UK.
The expansion also aims to address some logistical challenges associated with international watch trading, such as import duties and varying tax systems. Establishing a local inventory in the US will enhance commercial viability, as currently about 85% of watches sold from Subdial’s UK stock are purchased by British clients.
Consequently, the US operation will commence with its own inventory sourced domestically.
Both Subdial branches will maintain a shared digital infrastructure, ensuring a consistent customer experience, unified technology, and integrated data processing capabilities.
Founded in 2018, Subdial evolved from a notable online watch dealer into a comprehensive platform that merges physical trading, data insights, and an expanding community of collectors.
The platform now boasts over 100,000 users tracking timepieces valued at nearly $1 billion in their digital collections, with an extensive pricing database encompassing over 28,000 watch models, contributing to the Bloomberg Subdial Watch Index, which has increased by 10% in the past year.
Combined social media followings are nearing 400,000, having seen a tenfold increase in two years across Instagram and YouTube.
Gresham House Ventures, involved in this latest funding round, brings expertise in supporting businesses that balance online marketplaces with significant physical operations, including MPB, an international platform for second-hand photography gear that follows a model similar to Subdial’s.
“Ross and Christy have built a distinctive business, earning the trust of watch enthusiasts through a strong focus on the customer experience,” remarked Greg Blin of Gresham House Ventures. “Subdial builds on our track record of backing businesses with global potential.”
