Bonobos said Thursday that it has closed $55 million in Series D funding. Coppel Capital led the round with participation from investors that included Accel Partners, Lightspeed Venture Partners, Nordstrom, Mousse Partners, Glynn Capital Management, Forerunner Ventures and Felicis Ventures. Based in New York City, Bonobos is a men’s clothing brand.
New York, NY (July 3, 2014) – E-commerce driven men’s clothing brand Bonobos announces plans to quadruple its offline store presence by the end of 2016. Following the June 27th opening of its tenth Guideshop store in Los Angeles, Bonobos Inc. CEO and Founder, Andy Dunn, prepares to open thirty more stores nationwide. To fuel this expansion Bonobos closed a $55 million Series D funding round led by Coppel Capital with full participation of insiders including Accel Partners, Lightspeed Venture Partners, Nordstrom, Mousse Partners, Glynn Capital Management, Forerunner Ventures, and Felicis Ventures.
“Bonobos’ Guideshop model started as a test three years ago and has become one of our lead marketing, sales and customer service channels. 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.”
Guideshops allow customers to try on clothes in person and make assisted purchases in the store that are fulfilled through the web. With Bonobos.comserving as a virtual stockroom, investment in real estate for these “e-commerce stores” is minimal with locations ranging up to 1,500 square feet. Designed as an evolved answer to the traditional retail experience, Guideshops showcase the entire website offering in a range of sizes to try on without sacrificing customer attention for inventory maintenance. With a focus on the customer and a high-touch personalized service model, in-store transactions are double the average order value online, with premium dress shirts and suits penetrating much higher in Guideshops.
Bonobos tailored category, which includes suits, blazers and dress shirts, has seen over eight-times sales growth since 2011 and now represents 20% of the total business to date. Suits sell at twice the rate at the Guideshops as online, and dress shirts at a 50% higher clip.
“Customers are loving the look, feel and fit of our suits and dress shirts, and Guideshops have removed the friction of buying them over the web,” says Dwight Fenton, Vice President of Design at Bonobos. “We’ve responded to this enthusiasm by introducing slim suits and tailored slim dress shirts this year, and plan to further invest in this category with additional sizes and offerings.”
To reach expansion goals, Bonobos will rely on their in-house retail and technology teams for offline and online support. Dunn recently hired Tory Burch and Apple alum Ron Thurston as Director of Retail to manage the existing ten Guideshop locations and lead expansion into new markets. Bonobos technology team will continue to play a significant part in supporting the omni-channel business structure as well. With an in-house team of 25 New York City-based engineers led by Vice President of Technology Dario Vergara, who came from On Deck Capital in Fall 2013, Bonobos will launch a new version of their mobile optimized website through the Spree platform in the third quarter. The team prepared for the Bonobos.comre-launch earlier this year by launching the company’s first women’s brand,AYR.com, in February.
“Bonobos has doubled each year since launching in 2007 which we attribute to the power of combining great product and great service. We’ll continue to offer more individualized choice in product through new fits and styles and are excited about quadrupling our door count to further serve our customers,” adds Dunn. “We’re invested in continuing this trajectory and fulfilling our mission to be the most loved clothing company of all time.”
ABOUT BONOBOS INC.: Bonobos Inc. is the parent company of men’s clothing brand Bonobos, women’s brand AYR and golf line Maide by Bonobos. Founded in 2007, the company has established itself as a leader in the retail industry for its innovative approach to launching vertically integrated e-commerce brands. Bonobos Inc. provides high quality, great-fitting clothes and a hassle-free shopping experience across brands. Through its use of technology, data science and college-educated “Ninja” customer service representatives, Bonobos Inc. is better serving the consumer living in the digital age. Today, Bonobos menswear is the largest apparel brand in the U.S. to launch online. Bonobos Inc. is venture-backed by Accel Partners, Lightspeed Venture Partners, Nordstrom, Mousse partners and Forerunner Ventures.
ABOUT BONOBOS: Bonobos is a clothing brand focused on delivering great fit, excellent customer experience, and a fun approach to menswear. Launched online in 2007 with its signature line of better-fitting men’s pants, Bonobos is now the largest apparel brand ever built on the web in the United States. In 2011 Bonobos extended offline, launching Bonobos Guideshops, e-commerce stores that deliver personalized, one-to-one service to those wanting to experience the brand in person. To date, Bonobos has ten Guideshops across the United States. In 2012, Bonobos expanded its distribution partnering with Nordstrom, bringing Bonobos apparel into all 118-doors nationwide and to Nordstrom.com. Bonobos was named “One of America’s Hottest Brands” by Advertising Age, “Best Men’s Pants” by New York Magazine, and was twice awarded Crain’s “Best Places to Work in New York City”. Visit www.bonobos.com.