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

Wednesday, 6 September 2017

Allbirds founder Tim Brown will use some of the funds to help grow its retail footprint in New Zealand and the US.

Allbirds, the shoe company founded by former All White Tim Brown, says it is looking to open stores in New Zealand after a receiving a major funding boost.

On Wednesday (NZ time) the company revealed it had received US$17.5 million (NZ$24.18m) from hedge fund company Tiger Global Management, also known as The Tiger Fund.

Allbirds are made from merino wool sourced from New Zealand, which is then sent to Italy to be made into shoe material, and then on to South Korea for manufacturing.

The company said it would invest the funds to expand, research new products, and grow its retail footprint in New Zealand and America.

'This fresh capital will allow us to make further strides in material innovation and our brick-and-mortar retail presence,' co-founder Joey Zwillinger said.

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

* Allbirds Wool Runners shoe business for former All White footballer Tim Brown**

'We see an opportunity to be leaders in sustainable manufacturing in an industry that has not paid enough attention to its impact on the environment.'

Allbirds, which makes lifestyle shoes made from New Zealand merino wool, launched in 2015 after successfully raising about $3.68m through a global crowdfunding platform and from a US investment fund.

In September 2016, the former Wellington Phoenix captain secured an additional US$7.25m (NZ$10m) from Maveron, a private equity fund established by Starbucks founder Howard Schultz.

Allbirds starting selling online in the US and New Zealand in early 2016, and a year later, opened a flagship store in San Francisco, where the company is headquartered.

Allbirds has also had pop-up stores in central Wellington and Wellington Airport.

Its next store will open in New York later this month, but further stores were yet to be determined.

The funds would also support the expansion of their team, which includes more than 50 staff in San Francisco, as well as further positioning the company as 'a leader in footwear material innovation', Zwillinger said.

'We have a deep commitment to sustainable innovation in a category that hasn't changed in many decades.

'We have big plans for 2018 and are looking forward to investing these funds to extend the early traction we have created.'

Allbirds have reportedly been worn by some big names, including Google co-founder Larry Page and Channing Tatum's wife Jenna Dewan Tatum.

Brown, who previously lived in London and now lives in San Francisco, retired from professional sport following the 2010 FIFA World Cup in South Africa.

New York-based Tiger Global Management was founded in 2001 and has backed companies such as Spotify and Facebook.

It is run by billionaire Charles 'Chase' Coleman III, who is one of the 40th highest-earning hedge fund managers in the world, according to Forbes.