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Dive Brief:
- To fuel growth, kitchenware and home goods brand Caraway has raised $35 million in a funding round led by McCarthy Capital, the company announced on Wednesday.
- The company said it plans to use the funds to develop new products, invest in its marketing and customer experience operations, and hire more employees. The company has increased its staff from 20 employees in 2021 to more than 40 in 2022, per the press release.
- The company said it recently introduced a collection of tea kettles and another line of “Minis,” smaller ceramic cookware items.
Dive Insight:
Caraway has now raised $70.3 million over three funding rounds, per data from Crunchbase. Matt Breunsbach, managing director at McCarthy Capital, said the venture capital firm looks forward to supporting Caraway’s expansion into new product categories across its distribution channels.
“Caraway has been steadfast in its mission of providing consumers with a variety of non-toxic, design-forward options to elevate their homes,” founder and CEO Jordan Nathan said in a statement. “We’re excited to reach new consumers as we expand our nationwide presence and continue innovating in the home space over the next few years.”
Caraway highlighted it already has wholesale partnerships with notable retailers, including Amazon, Crate and Barrel, Zola, Nordstrom, West Elm and Williams Sonoma. Our Place, another DTC cookware brand, also tapped Nordstrom for a wholesale distribution partnership in the past. DTC brands more broadly have found collaborations with retailers beneficial for reducing their marketing costs to reach new customers.
Caraway’s funding round comes as other retail startups face declining interest from investors. A May report from CB Insights found that retail technology investments had dropped by 11% to $23.8 billion in Q1 2022, down from $26.6 billion in Q4 2021.
Many DTC brands have reported considerable losses or sales dips in recent weeks, prompting them to revise projections. In response to this period of economic uncertainty, some DTC brands have also turned to laying off employees to cut costs.
via https://www.aiupnow.com
Tatiana Walk-Morris, Khareem Sudlow
