Fancy Footwork by Allbirds raises $76.7m

Friday, 12 October 2018

Allbirds founders Tim Brown and Joey Zwillinger have plenty to smile about given the company's recent successful finance raising.

Allbirds shoes successful raising of $76.7m will drive expansion into the UK and Asia and help fund research into more sustainable footwear materials.

The company co-founded by Kiwi Tim Brown, has made its name from comfy sneakers made from New Zealand merino wool.

The US$50m (NZ$76.7m) fund raising was led by T. Rowe Price Investment Management, along with Fidelity Management & Research Company, and return backer Tiger Global which last year invested received US$17.5 million (NZ$24.18m).

Allbirds has stores in San Francisco, where Brown now lives, and New York. It also sells direct to customers through websites in the US, New Zealand, Australia and Canada.

* Allbirds hints at shops in New Zealand after $24 million boost

* Wool industry needs to shift away from commodity market

* Former All White Tim Brown gets $9.7m to expand shoe business**

Next week the brand will launch into the UK, opening its first store in London's Covent Garden, and next year it will expand into Asian markets and open additional outlets in the US.

The injection of capital will also support further research and development of sustainable materials.

Along with its signature merino shoes, Allbirds has come up with a fabric made from eucalyptus fibre, and jandals created from a sugarcane-based foam compound.

'There's an opportunity for us to take a leadership role in an industry that has paid lip service to the idea of sustainability,' Brown said.

'We're incredibly fortunate to be able to take advantage of this moment and challenge footwear norms, creating products that are not only better for our customers, but also better for the planet.'

Allbirds has also collaborated with New Zealand Forest & Bird in celebration of the currently live Bird of the Year competition, for which voting closes this Sunday.

The company has designed a limited edition shoe inspired by last year's winner, the Kea, with proceeds of New Zealand shoe sales going to Forest & Bird.

Allbirds originally launched in 2014 after successfully raising about $3.68 million through a global crowdfunding platform and a US investment fund.

In 2016 Brown, the former Wellington Phoenix captain, secured an additional US$7.25m (NZ$9.71m) from Maveron, a private equity fund established by Starbucks founder Howard Schultz.