Indochino is following up on the recent appointment of a new CEO with a big new round of funding.
The company, which allows you to purchase made-to-measure menswear on its website and in physical showrooms, is announcing a $30 million strategic investment from China-based clothing manufacturer Dayang Group.
After he became Indochino’s CEO at the end of last year, Drew Green said the company was aiming to sell 1 million suits per year by 2020. (While Indochino isn’t saying how many suits it sells currently, it does claim to have averaged more than 100 percent annual growth since it was founded in 2007.)
Yesterday, Green told me he realized that executing this “five-year plan” required bringing on additional capital. At the same time, he said he wanted “strategic investors, not really typical venture or institutional investors.” So Dayang Group isn’t just providing money, but also entering a “long-term strategic alliance” that should help Indochino improve its operations.
In part, the investment will fund continued product expansion. That means introducing three new suit silhouettes, tripling the options for suit and shirt fabrics and quadrupling suit personalization options. Green said that also means expanding beyond Indochino’s “core demographic, what I’d call our core persona” by offering wedding attire — in fact, the company plans to launch an online ordering system for wedding parties on March 15.
Green added that the showrooms (which Indochino has opened in New York, Beverly Hills, San Francisco, Boston, Philadelphia, Toronto and Vancouver) remain an important part of the business. Not only do people buy suits there, but the stores also drive sales on the web — Green said they can improve online sales in a city by as much 700 percent.
Indochino previously raised more than $17 million in funding from investors including Highland Capital Partners and Madrona Venture Group.