Dive Brief:
- Pattern Brands on Tuesday secured $25 million in Series B funding led by Toba Capital, Verlinvest and BAM Elevate, as well as existing investors Primary, RRE Ventures and Victory Park Capital.
- The fresh funding — which helped finance the company’s latest acquisitions, Yield and Poketo — will allow Pattern to continue building out its portfolio of brands, according to a company press release.
- Pattern Brands, which was formerly branding agency Gin Lane, now has six brands under its portfolio, including Open Spaces, Equal Parts, GIR and Letterfolk.
Dive Insight:
Pattern Brands is continuing to build out its portfolio of home brands with its latest acquisitions of Yield and Poketo.
The acquisition follows a $60 million funding round last year, which the company said would be used exclusively to purchase DTC brands in the home space. At the time of the announced funding last year, Pattern acquired GIR (“Get it Right”) and on Tuesday said it has been able to increase the brand’s profits by over 100% since then.
The company has experience in growing brands within the DTC space, operating as branding agency Gin Lane prior to Pattern’s launch. Gin Lane helped launch several retailers, including Harry’s, Hims, AYR and Stadium Goods.
But the company’s model of scaling brands under one operating umbrella is becoming increasingly popular. Very Great, for example, operates brands like W&P, Wild One and Courant under it. Win Brands Group operates Homesick, QALO, Gravity and Love Your Melon. And Harry’s Inc. has been adding to its portfolio of brands, most recently with the acquisition of Lumē.
DTC holding companies have become attractive to brands looking to scale because they provide access to shared resources around operations, technology and marketing.
“The DTC world is challenging the levers that gave birth to so many amazing brands: marketing costs, supply chain issues, cash flow, and staffing,” Nick Ling, CEO and co-founder of Pattern Brands, said in a statement. “When we took the leap to launch an entirely new business out of Gin Lane, we doubled down on our mission of creating a deeper, more personal relationship with consumers at scale through our Direct with Consumer model. We built the infrastructure, expanding our team beyond brand and design to include supply chain, logistics, go-to-market, and customer service.”
