Singapore D2C retailer bags $50m for international push

Love Bonito, a Singapore-based womenswear brand, has raised US$50 million in an all-equity series C round led by Chinese private equity firm Primavera Capital Group.

The Love Bonito leadership team / Photo credit: Love Bonito

Tokyo-based apparel company Adastria and venture capital firm Ondine Capital also participated in the round. Love Bonito declined to disclose its valuation following the fundraise.

The fresh funds will support Love Bonito’s international expansion in key markets like Hong Kong, Japan, the Philippines, and the US. The new capital will also help build up the company’s omnichannel presence in existing markets. While it has an ecommerce presence in 20 markets, Love Bonito’s 16 retail stores are largely concentrated in Singapore, Malaysia, Indonesia, and Cambodia.

“We have a growing international presence, with 50% of our ecommerce revenues and transactions coming from our non-Singapore markets,” CEO Dione Song said in a press briefing.

In its next stage of growth, the firm will focus on the Asian diaspora community. It views the segment as one of “high potential,” particularly in the US, where the company’s online revenue has grown more than 1,200% year-on-year, as of September 2021.

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According to Song, the Love Bonito has grown despite the hit to brick-and-mortar stores due to the Covid-19 pandemic. In the first six months of 2021, revenues grew 62% compared to the same period last year, Song said.

Between 2019 and 2020, Love Bonito’s revenue dipped slightly from US$23.8 million to US$23.3 million as sales as well as revenue from royalty and franchise fees fell, data from market research firm VentureCap Insights revealed.

While the “Covid-19 [pandemic] has had an impact on the broader retail landscape, our omnichannel presence has allowed us to diversify and focus on the right platform. In light of the pandemic, we’ve doubled down on our ecommerce expansion,” Song said, citing the firm’s 208% year-on-year growth in online revenue for September 2021.

The firm’s areas of focus in the near term include a content platform called LiBrary, which will cover topics ranging from female health and wellness to advice on relationships and careers, that’s expected to launch in 2022.

Within the apparel segment, Love Bonito will also look to expand into activewear and accessories. It also plans to use data science and AI to improve the level of its service and deliver greater personalization based on customers’ shopping habits, both online and in-store.

Photo credit: Love Bonito