Bonobos is furthering its expansion into physical retail and speaking with investors to become a half-billion-dollar brand.
The online menswear label has entered a new round of funding in order to open more retail spaces, according to a report by Reuters. The e-commerce brand is currently talking with investors to raise another $100 million, which would value Bonobos at roughly $500 million, according to Reuters’ anonymous sources close to the deal.
Having already successfully made the leap from online to brick-and-mortar with the launch of their first store in 2012, Bonobos has more aggressively pushed for physical locations during the last two years.
Bonobos’ unique take on retail spaces is to provide customers with what they call “guide shops.” The spaces don’t have inventory for sale, but instead allow customers to try-on and feel garments. The customer can then order the items to be delivered at home. Currently, Bonobos has 28 of these spaces throughout the United States with locations in New York, Texas and California.
Reuter’s points out that many online brands that have ultimately been sold to larger companies in order to further expand their direct-to-consumer reach. For example, the online stylists service Trunk Club, which was founded by one of Bonobos’ founders Brian Spaly, was sold to Nordstrom in 2014 for $350 million. Whether Bonobos’ will be able to remain private and expand through investors, or be purchased by a larger company, has yet to be decided.