Rothy’s slips on a billion dollar valuation
The Future. Sustainable apparel and footwear brand Rothy’s scored a massive investment from the corporate owner of the very famous Havaianas footwear brand, giving Rothy’s the means to expand. The investment is just another chapter in the industry’s transition to sustainability, which may soon be the only acceptable way to make clothing.
When the timing fits…
Rothy’s is recycling plastic into cold, hard cash… err… we mean shoes.
- The San-Francisco-based startup, which is mostly famous for its ballet flats made from single-use plastic bottles, just scored an investment from the Brazilian owner of Havaianas, Alpargatas.
- Alpargatas will take a 49.9% stake in the company ($200 million in cash, $275 million in shares), valuing Rothy’s at $1 billion.
- Rothy’s, which is already profitable, will use the money to promote itself and expand its retail presence (it already has stores in cities such as L.A. and NYC).
- Alpargatas also has the option to buy out the whole company between the first and fourth anniversaries of the deal.
Considering the successful IPOs of footwear brands like Allbirds and the eco-friendly transformation of legacy brands like adidas and Nike, the clothing industry may be key in pushing forward the consumer-led charge toward sustainability.