Tecovas is displaying no indicators of slowing down in 2022 because the Austin-based western footwear model secured $56 million in Collection C funding this week.
The Collection C spherical, which brings the model’s complete fairness funding to roughly $120 million, was led by Collection A and Collection B investor Elephant. Entry Capital, Seamless Capital, and Kemmons Wilson Firms rounded out the investor lineup.
Paul Hedrick, founder and CEO of Tecovas, instructed FN, “Our focus is – and can all the time be – on constructing probably the most beloved heritage western model on the earth, and this spherical of funding will solely assist us additional drive in direction of that imaginative and prescient.”
He famous that this newest funding will permit the model to “scale its imaginative and prescient” and “welcome much more prospects to the model.” He additionally mentioned that the model will likely be “investing considerably in hiring, increasing our retail footprint, shopping for extra stock, and launching many new merchandise.”
Hedrick instructed FN that as a part of the brand new funding, Tecovas plans to open an extra 5-7 shops in 2022, the primary of which opens tomorrow in Fairfax, Virginia. The enlargement into Virginia marks the model’s twentieth retailer nationwide and its presence in 11 states.
Whereas the brick-and-mortar development technique is necessary to Hedrick, he maintained that e-commerce nonetheless accounts for about 60% to 65% of its gross sales and he has no plans so as to add wholesale this 12 months – retaining the corporate 100% direct-to-consumer. However, he did add that the retail shops the model does have are “extremely productive” and “extremely worthwhile.” “We actually see a possibility to index our retail gross sales up,” he mentioned.
Trying forward, Hedrick desires to develop his workforce, too. “We plan to develop the variety of workers at our Austin headquarters to greater than 130 by the top of 2022, bringing our complete variety of workers to greater than 500,” Hedrick instructed FN. “There will likely be development in roles throughout an array of capabilities, together with merchandising, design, operations, advertising and marketing, finance, accounting, human assets and authorized roles.”
And anticipate to see extra merchandise from the model within the subsequent one to 2 years. Hendricks mentioned that the model will likely be ramping up its stock and introducing new merchandise to its lineup whereas additionally increasing present classes together with rugged footwear, ladies’s footwear, attire, and equipment.
This information comes because the model achieved its first $100 million+ income 12 months in 2021 and celebrated the sale of its 1 millionth pair of cowboy boots within the fourth quarter of 2021. Hedrick instructed FN that he’s projecting 50%+ development in 2022.
“We’re constructing probably the most welcoming model in western,” Hedrick added. “Heading into 2022, you will note Tecovas’ continued dedication to representing the spirit of western with a very genuine model – whereas additionally opening the tent of sporting cowboy boots, pearl snap shirts, leather-based items, and extra to a wider viewers than we’ve immediately.”