How a single statistic sparked Yoto’s international growth

In 2015, Yoto co-founder Ben Drury came across a statistic that sparked the creation of a new audio brand aimed at children. “We came across a piece of research that showed that audio listening for children really helps inspire creativity and imagination way more than screen-based content,” said Drury, speaking of his motivation for starting the business with his business partner Filip.

Both men were fathers who were worried about the number of hours young children spent with screens.

They created a prototype one year later, and in 2017 they took their concept to funding platform Kickstarter and the idea that started with two concerned dads became a reality.

“The basic principle of Yoto is ‘kids in control,’” explains Drury. “We use these simple Yoto cards that children put inside the player, and it will play their favourite music, stories, and educational activities.”

The initial Yoto player was a hit and Yoto launched its second player in 2020. The company expanded its international ambitions in June of that year, when the Yoto player reached the US.

It was at this point that HSBC’s expertise proved invaluable for Ben and Yoto: “We've seen Yoto being used in over 200 countries and have five primary markets: UK, US, Canada, France and Australia.”

“Our partnership with HSBC has grown over several years and I personally banked with them before. The bank was a natural partner for us given their broad international reach and strong network across many, many countries.

“We have only just started to tap into that network, but we have a team in China, and being able to talk to and spend time with local HSBC staff and go on trade missions has been helpful and will continue to be so in the future.”

HSBC’s relationship with Yoto began in 2022, following conversations between corporate banking director Aman Nirwal and Yoto’s CFO Ben Averis. “The initial conversations with Yoto were really around understanding how they got to where they got to,” said Aman.

That conversation sparked a connection with local suppliers in Shenzhen where Yoto operates and produces its products, highlighting the value of HSBC’s networks for businesses of all sizes.

Following this introduction, Yoto was able to leverage HSBC’s international network and harness the power of its local knowledge. Knowing that there were partners on the ground to help navigate the unknowns was a huge help for Ben and his team.

“HSBC's international network is really valuable and quite special,” says Aman, reflecting on HSBC’s relationship with Yoto at that time. “It is a differentiator to others in the market because we have global clients and a global client footprint that helps us build relationships.”

International growth has been important to Yoto as it looks to the future of what can be achieved for children around the world. But that is not all the relationship with HSBC has allowed Yoto to do.

Ben said that the lending facility has been extremely helpful with investing in stock: “The HSBC facility fits wonderfully on top of that equity finance and allows us to really invest in stock and inventory so that we are ready for peak times such as Christmas.

“Some of that stock, which has been financed by HSBC, means we can take more risks and can expand faster.”

While Yoto seeks to expand rapidly in order to meet its goals, the company still recognises the importance of user feedback. A company built for families, their most heartfelt feedback has come from families of children with learning difficulties who have had positive experiences with the Yoto player.

“I am most proud the work I have done, with HSBC’s support, for companies like Yoto that are entrepreneurial and really drive change,” says Aman, reflecting upon Yoto’s ambitions.

“Being able to be part of that journey and help them unlock that growth, enter new territories and provide structured facilities, that they potentially would not have got without HSBC's Growth Fund, I think is really rewarding.”