Yoto, a standout player in the child-centric technology arena, has recently clinched the second position in the esteemed UK Technology Fast 50 Awards. This recognition is a nod to their exceptional growth — an impressive 66,572% over the last four years — establishing them as a leading force in the rapidly evolving landscape of technology for young minds.
The UK Technology Fast 50 Awards, an annual ranking of the 50 fastest-growing technology businesses in the UK, represents a significant milestone in Yoto’s journey. This acknowledgment underscores the company’s substantial impact on the child-centric tech sector, evaluated meticulously based on percentage revenue growth.
Founded in 2015 by Filip Denker and Ben Drury, Yoto embarked on a mission to redefine children’s entertainment and education. The company boasts a diverse team of over 100 professionals spread across the UK, North America, and France. Yoto’s innovative devices, operated by physical smart cards, provide children with access to a rich array of audio stories, educational activities, music, podcasts, radio, and sounds.
The core of Yoto’s triumph lies not just in its technological prowess but in its community-centric approach. Ben Averis, the Chief Financial Officer at Yoto, underscores the power of word of mouth in their growth strategy. “From the beginning, we’ve seen the magic of families buying a Yoto, falling in love with it, and telling their friends about it,” notes Averis. This grassroots approach has fostered a highly engaged community of families who resonate with Yoto’s commitment to delivering meaningful and engaging content for children.
Seasonality poses a challenge, as over half of Yoto’s business is concentrated around Christmas. To counter this, the company strategically focuses on evergreen content and investments in original Intellectual Property (IP). The BrainBots series, a top-selling original IP, has not only contributed to Yoto’s revenue but has also facilitated partnerships with entities like Merlin Entertainments to co-create content using the IP.
In the spirit of Yoto’s commitment to redefining children’s interactive learning experiences, heartfelt congratulations are extended on their well-deserved recognition in the UK Technology Fast 50 Awards. Yoto’s journey is a compelling narrative of innovation, resilience, and community engagement. As the company continues to shape the future of child-centric technology, the industry watches with anticipation, eager to witness the next chapter in Yoto’s remarkable story.
Navigating the challenges associated with managing a physical product, especially amid overseas manufacturing constraints and the disruptive impact of the COVID-19 pandemic, Yoto has demonstrated resilience. Averis points out, “When you grow as fast as we have and you’re selling a physical product, you have to stay focused on actually getting that product into the hands of your customers.” This commitment to customer satisfaction and product delivery has been a cornerstone of Yoto’s success.
While Yoto initially relied on equity investment, their success has opened doors to multiple offers for high-quality debt, signaling a new phase of strategic growth. Averis explains, “Because of our success, we now are working with notable banks who offer high quality and economical lending.” This shift highlights Yoto’s evolving financial strategy and its ability to attract substantial investment in alignment with their growth trajectory.