Travel brand Monos raises $30M
Monos, the Vancouver-based D2C travel lifestyle brand, raised a $30 million Series B financing led by Venn Growth Partners, CEO Victor Tam tells Axios.
Why it matters: The fundraise, which Tam says was oversubscribed to the tune of $40 million, represents a bright spot in the gloomy consumer discretionary sector.
Details: Tam and co-founders Hubert Chan and Daniel Shin together continue to own a majority stake in Monos.
- Strand Equity and Canadian tech entrepreneur Michele Romanow joined the round.
- Tam declined to comment on valuation, noting only that Monos has now raised $40 million.
- Proceeds will be invested in building up inventory, he says, as well as new product development and hiring.
Yes, and: Following the raise Monos will likely turn to debt to fund the company, Tam says.
- It could add another $20 million to $30 million as early as Q1 or Q2 next year.
- He said that Fort Capital Partners is among firms that could facilitate a debt raise.
By the numbers: The company will pass the nine-figure revenue mark and grow 400% year over year this year.
- In 2020, the company grew 800% versus the prior year, while in 2021 it grew between 300% and 400%, Tam says.
- It has been profitable from year one, and raised no seed round or money from friends and family, Tam claims.
- Monos was cash flow positive when it decided to raise capital to buy inventory for when the pandemic subsided.
How it works: Monos was founded in the spring of 2018 and began selling products in June 2019, intending to be an accessible version of LVMH-owned Rimowa.
- Carry-on luggage prices range from $245 to $325, while checked-in-sized bag prices fall between $300 and $450.
- Monos also donates 1% of its gross revenue to the environmental group 1% for the Planet.
What's next: The luggage brand currently sells in the department store Nordstrom in Canada and the U.S. and is in the process of opening its first physical store in Vancouver.
- It plans to then add curated and experiential locations in New York City and Toronto, which will initially be pop-ups to gather data to determine which neighborhoods to open in.
- The company will also add new products, such as garment bags, toiletry kits, weekenders and totes.
The bottom line: Monos wants to be the next great Canadian brand to come out of Vancouver, following in the footsteps of Lululemon and Aritzia, Tam says.