Bonobos raises $55 million to expand its bricks-and-mortar locations
July 7, 2014 12:15 PM
Bonobos Inc., the parent company of men’s clothing brand Bonobos and women’s clothing brand Ayr, has received $55 million in a Series D funding round led by Coppel Capital. Other participants include Accel partners, Lightspeed Venture Partners, Nordstrom, Mousse Partners, Glynn Capital Management, Forerunner Ventures and Felicis Ventures. This round brings Bonobos’ total funding to $128 million.
This round will fund 30 additional bricks-and-mortar “guideshops,” which are set to open by the end of 2016, says CEO and founder Andy Dunn. Bonobos’ shops allow consumers to try on items and make assisted purchases in the store that are fulfilled through the brand’s e-commerce sites. This strategy allows the retailer to keep its physical stores to less than 1,500 square feet per store, smaller than an average apparel retail store. Bonobos, which sells online at Bonobos.com, currently operates 10 bricks-and-mortar stores, having opened its first one in 2011.
“We’ve cut online marketing expenses in half as in-store purchases have increased, and customer reaction to the model has been overwhelming,” says Dunn. “We’ve learned that brick-and-mortar isn’t going away, but it is evolving into something more exciting.”
The brand will rely on in-house teams and recently hired Tory Burch LLC and Apple Inc. veteran Ron Thurston as director of retail to manage existing store locations, Dunn says. Bonobos also announced plans to launch a new version of its mobile-optimized web site in the third quarter using e-commerce technology from Spree Commerce.
Bonobos Inc. is No. 282 in Internet Retailer’s 2014 Top 500 Guide and had an estimated $65.0 million in 2013 web sales, up 62.5% from $40.0 million in 2012. Tory Burch LLC is No. 157, and Apple Inc. is No. 2.