Yoto

Key numbers

The product

Yoto makes two screen-free audio players, the Yoto Player and Yoto Mini, that play content from physical NFC cards a child inserts into the device, plus a subscription club with 1,200+ titles licensed from Penguin Random House, Disney, Sony, Warner Music, Roald Dahl, and Harry Potter. It solves parents' dilemma of wanting quality audio content without screens, cameras, microphones, or addictive design, taking deliberate inspiration from Nintendo's hardware-plus-content model and Montessori principles. The hardware itself is profitable, with recurring revenue coming from card sales and a $4.99/month digital subscription. Prices run from about $100 for a Mini to $120 for the 3rd-generation Player, sold direct and through Target in the US. Versus tablets and smart speakers, Yoto puts children in control with a pixel display, no ads, and no data-hungry features.

How they did it

Ben Drury, former CEO of music-tech company 7digital, and co-founder Filip Denker started Yoto in 2017 after seeing how screens dominated children's entertainment; they prototyped on Raspberry Pi and crowdfunded early units. The Yoto Player, designed with Pentagram, launched in early 2020 and was named one of TIME's Best Inventions of 2020; the Yoto Mini followed in 2021. Backed by investors including the Chan Zuckerberg Initiative, Sir Paul McCartney, and Index Ventures, revenue exploded from $4 million in 2020 to $67 million in 2023, with 70% coming from North America. The company expanded to five countries, entered about 1,900 Target stores in October 2024, raised a $15 million HSBC growth facility, and expects its first full-year profit in 2025 despite a £7 million battery recall cost in 2024. Deloitte ranked it the second fastest-growing UK tech company in 2023.

Why it worked

• Nintendo-style ecosystem: profitable hardware plus high-margin recurring card and subscription revenue
• Perfect post-2020 timing as parents actively sought screen alternatives for children
• Premium licensed content library creates switching costs and constant repeat purchases
• Screen-free, privacy-first design (no camera, no mic, no ads) became the brand's defensible identity