Kleiner Perkins invests $30 million in online retailer UNTUCKit – Nasdaq

By Liana B. BakerJune 4 (Reuters) - UNTUCKit, a retailer focused on men's
casual shirts that are designed to be worn untucked, said on
Sunday that venture capital firm Kleiner Perkins Caufield &
Byers had invested $30 million in the company's first major
round of fundraising.
    The funding will help UNTUCKit open 15 new U.S. stores and
expand into women's and children's apparel. Founded in New York
in 2011 as an internet retailer, it started opening physical
stores in 2015 as part of a "clicks-to-bricks" strategy.
    UNTUCKit did not disclose the implied valuation that Kleiner
Perkins's investment inferred on the company, but a source said
on condition of anonymity that the transaction values UNTUCKit
at more than $200 million.
    Like some of its competitors, UNTUCKit is blurring the lines
between online and physical stores. Several e-commerce companies
that have built a growing customer base have started to turn to
retail outlets to market their products. UNTUCKit now has eight
brick-and-mortar stores.
    "We always knew we would have a physical presence since a
large percent of male consumers still are uncomfortable shopping
for a new brand digitally," chief executive Aaron Sanandres said
in an interview.
   Mood Rowghani, a Kleiner Perkins general partner, said in a
statement that UNTUCKit having both a digital and physical
presence has "profound benefits to merchandising, design,
marketing, and customer happiness."
   Bonobos, another men's retailer which sources have said is in
talks to be acquired by Wal-Mart Inc <WMT.N>, runs "guideshops"
that allow customers to try on clothes before having them
shipped to their home. Eyewear company Warby Parker and clothing
rental service Rent the Runway have made similar moves.
    But running retail outlets has its challenges, including
managing inventory, human resources and marketing strategies.
Online retailer NastyGal shuttered its physical stores as part
of its bankruptcy process earlier this year.
    Sanandres said UNTUCKit is looking to open 100 stores over
the next five years, and is in discussions with mall developers
Simon Property Group Inc <SPG.N>, Macerich Co <MAC.N> and
Taubman Centers Inc <TCO.N> about these plans.
    UNTUCKit was founded by Sanandres and Chris Riccobono, two
students who met at Columbia business school. The company had
previously raised $200,000 from friends and family.
    Its first marketing dollars were invested in radio and
magazine advertisements, as it sought to establish its brand.
While its signature product is untucked shirts, it has since
branched out into T-shirts, jackets and shorts.
    Its founders say UNTUCKit is profitable with sales more than
doubling every year.
    PricewaterhouseCoopers advised UNTUCKit.

 (Reporting by Liana B. Baker in San Francisco; Editing by
Andrea Ricci)
 (([email protected]; 4156772537; Reuters
Messaging: [email protected]@reuters.net))

Keywords: UNTUCKIT FUNDING/KLEINERPERKINS