Kiwi firm Allbirds raises almost $40 million

Allbirds co-founders Joey Zwillinger (left) and Tim Brown (right) wearing their wool runners shoes. Photo / Supplied

Kiwi merino footwear brand Allbirds has secured a further $24 million in funding after raising just under $10 million last year.

The new capital investment takes the company's total investment since it was launched in 2015 to US$27.5m ($38.4m).

Allbirds was co-founded by former Wellington Phoenix captain and All Whites vice-captain Tim Brown, along with biotech engineer Joey Zwillinger.

The pair spent more than two years perfecting a textile suitable for shoes using superfine merino wool with a vegetable-oil based polyurethane insole before raising an initial US$2.7m to launch in New Zealand and the US.

Since then, Allbirds has grown its team to more than 50 employees.

The funds would be used to further its research and development into new and sustainable materials as well as continuing international expansion, Zwillinger said.

"We see an opportunity to be leaders in sustainable manufacturing in an industry that has not paid enough attention to its impact on the environment; this fresh capital will allow us to make further strides in material innovation and our brick-and-mortar retail presence," he said.

Brown said the company felt fortunate to have the opportunity to challenge industry norms.

The Series B investment was led by Tiger Global Management LLC, with further investment from existing investors such as Lerer Hippeau and Maveron - a fund developed by Howard Schultz, the founder and chief executive of Starbucks.

Tiger Global partner Lee Fixel said Allbirds had managed to create a unique product while also growing a large direct-to-consumer business.

"We have big plans for 2018 and are looking forward to investing these funds to extend the early traction we have created with the Wool Runners and Loungers," Zwillinger said.

The shoes, which cost around US$95 on the Allbirds website, are touted as being an eco-friendly and comfortable wool shoe, and have already been selling well in the US and New Zealand