Dive Brief:
- After hitting a milestone within its Neighborhood Showroom business, outdoor furniture brand Outer on Thursday announced it's raised $50 million in a Series B funding round. Capital Today's Kathy Xu led the round, with additional contributions from Tribe Capital, C Ventures and Upfront Ventures, among others. Existing investors including Sequoia Capital China and Mucker Capital also participated.
- The DTC brand will use the funds to develop sustainable materials, build an eco-friendly supply chain, expand their product offerings and reach new customers, according to a press release emailed to Retail Dive. Outer expects to enter international markets by the end of the year.
- The most recent funding follows a January round of $10.5 million, pushing the brand's total funding to $65 million.
Dive Insight:
Despite the uncertainty the pandemic has brought on, Outer hasn't slowed down.
In fact, the DTC outdoor furniture retailer has been able to benefit from selling in the home sector, which has seen increased demand over the past year. More than 80% of U.S. homeowners said they are more interested in updating their outdoor spaces than they were prior to the pandemic, while 54% have already made at least one home improvement project over the last year and a half, with the backyard being the most popular spot, according to data cited by the company.
At the start of the year, Outer raised $10.5 million in order to expand its assortment beyond furniture and rugs, add to its Neighborhood Showrooms model and build on its sustainability goals.
To the latter point, Outer's CEO Jiake Liu said the company is working toward developing new eco-friendly materials and achieving carbon neutrality.
"Our work in sustainable materials isn't stopping at recycled plastics," Liu said in a statement. "We are working on new, eco-friendly fabrics, plastics, and concrete to replace the industry standards that currently pollute our environment. We are currently working towards carbon neutrality and have set our sights on becoming carbon negative in the future."
The brand earlier this summer also announced it opened its 1,000th Neighborhood Showroom, a concept that invites potential customers to the homes of existing ones in order to test out Outer's products.
The brand said its sales have increased more than 1,000% amid the pandemic, and earlier this year projected sales to surpass $12 million.
via https://www.aiupnow.com
Caroline Jansen, Khareem Sudlow
