The web-only company will use the funding to boost its marketing efforts.
Zak Stambor , Managing Editor
Online-only men’s clothing retailer Bonobos has raised $18.5 million in a third round of funding. It plans to use the additional capital to build boost its marketing efforts.
"We built this company with no real marketing team or science behind our spending," says Andy Dunn, founder and CEO. "Now we're looking to get smarter by investing in different customer acquisition techniques by hiring a marketing team."
Venture investors Lightspeed Venture Partners and Accel Partners led the funding round. Lightspeed’s Jeremy Liew and Accel’s Sameer Gandhi will join the retailer’s board.
"We believe that they are the leading pure-play vertically integrated men's apparel e-retailer, and are well-positioned and well-capitalized to expand on their leadership position," says Liew.
Since its launch in 2007 as a "better-fitting pants over the Internet" company, Bonobos has expanded its product portfolio to include suits, button-down shirts and casual wear.
Roughly half of the consumers who buy once on the site, return to the site within a year to complete another transaction, says Dunn.
"We've seen that customers are loyal to our concept," he says. "Now we want to make more people aware of our brand."
The retailer says it has tripled its sales over the past six months.
Bonobos has raised a total of $26.25 million to date.