Aussie bedding brand Ettitude raises $2.5 million
Melbourne-born sustainable bedding brand Ettitude has just closed a US$1.6 million ($2.54 million) seed round in the US, even as the coronavirus pushes other retailers to the brink of closure.
The online retailer, which is now based in Los Angeles, has seen demand for its bamboo sheets, pyjamas and other sleepwear accessories spike over the last year, amid consumers’ growing environmental consciousness.
And unlike many other retailers, demand for Ettitude’s products hasn’t dropped off during the global COVID-19 pandemic.
“We’ve actually seen demand increase, particularly in April as people were starting look to ways of making lockdown more comfortable,” Phoebe Yu, Ettitude’s founder, told Inside Retail.
Yu said the uptick in bedding and pyjama sales helped get investors over the line despite the tough economic conditions.
“It’s going to be unique for every business looking to raise right now, but for us, it helped that we were able to demonstrate an increased appetite for our product right now,” she said.
The investment comes after a strong 2019 for Ettitude, which saw the launch of the brand’s first pop-up store in Los Angeles and a three-fold increase in revenue.
The investment will reportedly be used to expand into new product categories and further build upon the brand’s proprietary “CleanBamboo” textile range, which is certified organic and uses a closed loop system that drastically reduces the amount of water required.
The round was led by Drumbeat Ventures, a US-based fund that invests in brands with a strong sense of purpose and set of values. It was joined by TA Ventures, a European, female-founded fund focusing on technology innovation.