Dallas-based Harimari raises $10 million to accelerate growth of casual footwear and lifestyle brand » Dallas Innovates

Dallas-based premium sandal brand Hari Mari has relied primarily on organic growth since its launch in 2012. Now, thanks to a new $10 million equity raise, the company is embarking on a true scale-up strategy in the casual footwear and lifestyle space.

Hari Mari's investment round was led by financial services entrepreneur Landon Smith, founder and former CEO of Dallas-based national business advisory firm Liberon. Additional participants include Montgomery Capital Advisors and his DWBI Investments. Hari Mari said that after closing, Method Bank will serve as the primary banking function, while also providing a viable line of credit for the business.

“We are ready to start expanding the brand,” co-founder Lyla Stewart told Dallas Innovates. “Our growth over the past 12 years has been mostly organic, which is great, but we’re excited to start advertising and the new marketing efforts we have coming up. .”

Hari Mari co-founders Jeremy Stewart and Lila Stewart [Photo: Hari Mari]

So what are the company's goals?

“I hope Hari Mari becomes famous in the next few years,” Stewart said.

Laila's husband, Jeremy Stewart, is the company's co-founder and CEO, and they share the same lofty ambitions.

“Since we started the brand out of our garage in 2012, my wife and I have dreamed of growing it. Hari Mari “It has become a household name,” he said in a statement. “Harimari makes best-in-class shoes and delivers exceptional value to our great customers. With this increase, we are investing in our core high-margin flip-flop and slipper lines and expanding our customer base. Expand your base and strengthen your established position. Hari Mari We aim for sustainable and long-term market growth. ”

Co-founder connected with equity raising leader through “a mutual friend here in Dallas”

landon smith

Lila Stewart said she and her husband were connected to Landon Smith, who led the $10 million equity raise, through mutual friends in Dallas.

A serial investor, Smith was the CEO of Envolve, a corporate wellness consulting program, and the founder of Zyyah, a digital home companion that leverages technology, expertise, and relationships to radically simplify home management. He also serves as chairman.

In addition to the investment, Mr. Smith and his advisory team will play an active role in helping Harimari management develop and advance the company's strategic objectives in the coming months and years, the company said. .

“Well-made consumer products in the casual space will serve as a growth center for decades to come,” Smith said in a statement. “We believe Hari Mari will be at the forefront of that conversation, and our investment will give the brand and its management team the runway to get there. Happy Journey.” It will be.”

[Photo: Hari Mari]

Withdraw from physical stores and focus on e-commerce and wholesale business

Harimari is known for injecting color and comfort into its distinctive line of flip-flops. At the time of its launch, it quickly gained a foothold in the $26 billion global sandal market by featuring its patented “no-break-in” MemoryFoamToe and commitment to manufacturing high-end casual footwear.

In 2021, Hari Mari opened its first brick-and-mortar location with a flashy new 3,500-square-foot flagship store at 3213 Knox Street in the heart of Dallas' revitalized Knox neighborhood. However, the brand has since moved away from in-store retail and focused squarely on its core strengths: e-commerce and wholesale.

Harimari is currently sold in more than 800 retail stores in the United States, Mexico, Canada, and the Bahamas. The brand has recently been picked up by new retailers such as Free People and Dillards, as its Spring 2024 collection is coming soon.

The company also sells products through HariMari.com, offering footwear, sweatshirts, shorts and joggers ranging from $60 to $160.

Hari Mari's Dunes flip-flop series is the company's best-seller. [Photo: Hari Mari]

Laila Stewart said Harihari's business was “almost 50-50” between e-commerce and wholesale.

“There is a new sector of our business that is growing rapidly and that is the corporate business,” she said. “Whether you are a company that wants to gift Harimari to your employees or team, or want to customize your product by adding your logo for gifting or for further distribution.I It's fun to see that part of our business take off.”

The company is also moving into slippers, a relatively new segment that is “doing phenomenally well.”

“We made it with Texas shearling and Texas leather and all the comfort you’d find in a flop,” said Lila Stewart. “They're really nice.”

[Photo: Hari Mari]

New hires, new platforms, and pop culture collaborations

With a large amount of new money in hand, Hari Mari wants to build on recent developments and news. The company recently hired Dana Sawyer as its new sales director. Mr. Sawyer previously served as sales director for American footwear brand Chaco for seven years.

Hari Mari recently launched its first-ever women's platform with the Grandes line aimed at the company's “big-footed” customers. ” Additionally, he has taken his brand of lifestyle into the realm of pop culture by sponsoring his two upcoming Texas music festivals and collaborating with Grammy Award-winning Texas band Midland. .

[Photo: Hari Mari]

A comfortable concept born from “sun” and “sea”

The Stewarts were inspired to start Harimari after working on a project to improve the lives of children in Indonesia. Jeremy filmed a documentary to help starving children in Southeast Asia, and Lila volunteered at an orphanage in Jakarta in collaboration with the American Women's Association. They continue to participate in philanthropic efforts, with a portion of Hari Mari's sales going to help support families and children fighting childhood cancer through the Flops Fighting Cancer campaign.

What is the name of their company? It was inspired by the time the couple spent on the other side of the world. “Hari” means “sun” in Indonesian, and “Mari” means “sea” in Latin.

[Photo: Hari Mari]

Speaking of sunshine, things are definitely looking bright for the growing Dallas brand. “And doing this with incredibly talented people who have a wealth of experience makes it even more exhilarating,” said Lila Stewart.

Harimari-san The Spring 2024 sandal line is available on HariMari.com. You can also see a complete list of the brand's retail partner stores and locations.

Hari Mali said that after completing the $10 million equity raise, Method Bank will serve as the primary banking function while also providing an active line of credit to the business.