Naadam nabs $16 million investment

Sustainable cashmere company Naadam announced on Tuesday that it has raised $16 million in Series A funding. The funding was led by private equity firm, Vanterra Capital with participation from Torch Capital, U-Start Club, Trail Post Ventures, and Plug & Play Ventures.

The New York-based company expects to invest the funding in marketing, advertising, and brand communication initiatives, as well as physical retail with plans to open permanent brick-and-mortar locations beginning this fall.

Co-founded and launched by Matthew Scanlan, Diederik Rijsemus and Hadas Saar in 2015, Nadaam has managed to disrupte the luxury cashmere industry thanks to its unique supply chain, which cuts out the middleman, leading to lower consumer prices and supply chain sustainability.

The company currently operates through its online store where it sells women’s wear, men’s wear and some home products. Naadam says it has seen triple digit growth year-over-year.

“Naadam is focused on fundamentally changing consumer expectations around meaningful brand values and value propositions,” said Scanlan, in a news statement.

“Our business is built on purely sustainable supply chain practices, continually differentiating Naadam from our global competition. We are humbled but excited by the opportunity Naadam has to change the face of modern luxury brands and ethical business practices.”

Managing Partner at Vanterra Capital, Shad Azimi, added: “We like to back authentic brands at the intersection of quality and value. We believe that Naadam is well positioned in the market as they have successfully disintermediated the traditional supply chains and are using an effective e-commerce strategy to target millennial consumers.

"Naadam has a unique story and mission statement, and this narrative creates a personal connection with its audience that resonates," Azimi added.

Naadam nabs $16 million investment

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