Apparel producer Dayang Group has invested C$42m ($31.6m) in Canada-based made-to-measure menswear company Indochino in conjunction with the formation of a five-year alliance agreement.
Founded in 2007 as a chiefly online business, Indochino supplies customised, fitted suits from luxury fabrics. It owns retail showrooms in seven North American cities and serves customers in 130 countries.
Dayang’s investment will enable Indochino to bring in three new suit silhouettes, triple its suit and shirt fabric selection, and quadruple the range of suit personalisation options.
The funds will also support the introduction of operating efficiencies as part of the company’s 2016-2020 plan, which it will look to execute as it opens more retail locations and ups its media spending.
Drew Green, Indochino’s CEO, said: “This alliance is the first phase of our investment strategy, and we will continue to explore strategic opportunities that further accelerate demand and distribution for our brand and products.
“The supply-focused partnership with Dayang Group combined with strategic investment strengthens our ability to achieve our 2016-2020 plan, and is a testament to our team, who was able to make this happen in just four months.”
The Dayang funding follows a $13.5m series B round for Indochino in 2013 that was led by Highland Consumer Partners with participation from Madrona Venture Group, Acton Capital Partners and Jeff Mallett.
Indochino had already raised $4m in a 2011 round featuring Madrona and Burda Digital Ventures, the corporate venturing subsidiary of Hubert Burda Media that was later spun out to become Acton Capital Partners.
– Photo courtesy of Indochino