Tecovas is showing no signs of slowing down in 2022 as the Austin-based western footwear brand secured $56 million in Series C funding this week.
The Series C round, which brings the brand’s total equity funding to approximately $120 million, was led by Series A and Series B investor Elephant. Access Capital, Seamless Capital, and Kemmons Wilson Companies rounded out the investor lineup.
Paul Hedrick, founder and CEO of Tecovas, told FN, “Our focus is – and will always be – on building the most beloved heritage western brand in the world, and this round of funding will only help us further drive towards that vision.”
He noted that this latest funding will allow the brand to “scale its vision” and “welcome even more customers to the brand.” He also said that the brand will be “investing significantly in hiring, expanding our retail footprint, buying more inventory, and launching many new products.”
Hedrick told FN that as part of the new funding, Tecovas plans to open an additional 5-7 stores in 2022, the first of which opens tomorrow in Fairfax, Virginia. The expansion into Virginia marks the brand’s 20th store nationwide and its presence in 11 states.
While the brick-and-mortar growth strategy is important to Hedrick, he maintained that e-commerce still accounts for about 60% to 65% of its sales and he has no plans to add wholesale this year – keeping the company 100% direct-to-consumer. But, he did add that the retail stores the brand does have are “highly productive” and “highly profitable.” “We certainly see an opportunity to index our retail sales up,” he said.
Looking ahead, Hedrick wants to grow his workforce, too. “We plan to grow the number of employees at our Austin headquarters to more than 130 by the end of 2022, bringing our total number of employees to more than 500,” Hedrick told FN. “There will be growth in roles across an array of functions, including merchandising, design, operations, marketing, finance, accounting, human resources and legal roles.”
And expect to see more products from the brand in the next one to two years. Hendricks said that the brand will be ramping up its inventory and introducing new products to its lineup while also expanding existing categories including rugged footwear, women’s footwear, apparel, and accessories.
This news comes as the brand achieved its first $100 million+ revenue year in 2021 and celebrated the sale of its 1 millionth pair of cowboy boots in the fourth quarter of 2021. Hedrick told FN that he is projecting 50%+ growth in 2022.
“We’re building the most welcoming brand in western,” Hedrick added. “Heading into 2022, you will see Tecovas’ continued commitment to representing the spirit of western with a truly authentic brand – while also opening the tent of wearing cowboy boots, pearl snap shirts, leather goods, and more to a wider audience than we have today.”