Luggage making companies do not actually come under traditional software startups and they might not be the sexiest business but still a suitcase-making startup proved recently that several commerce markets are quite interested in investing if firms are willing to listen to what customers actually need. Away, the company co-founded by Steph Korey and Jen Rubio, has recently raised a $20 million in Series B funding after selling over 10,000 suitcases.
A look into the business of Away
‘If you sell what consumers actually want, your business is bound to run and profit’ – proved the suitcase-making startup, dubbed Away, recently. The startup generated over $20 million in revenue after selling almost 100,000 suitcases. The startup has already raised a $20 million Series B led by current investor Comcast Ventures, Accel Partners, and Global Founders Capital plus Forerunner Ventures.
The startup makes stylish expansive polycarbonite suitcases that are equipped with battery packs and have maximum packing space and unbreakable exterior. The suitcases are not very expensive and are sold direct to consumers. The investors were attracted by the strong unit economics and the $50 million revenue run rate of Away which should make it a profitable business this year.
The recent cash funding brings the startup to $31 million raised. It will also fund its entry into retail with plans to open over four to six retails stores. The startup is currently seeking to become a lifestyle brand with its forthcoming digital and print magazine and new podcast.
Away planning to build its product line
The startup is also planning to grow its product line from the two checked and two carry-on luggage pieces it makes currently. Jen Rubio, the Co-founder of the startup, said that the suitcase making company is planning to “make the one-perfect everything that you need for travel.”
The Co-founder did not give any specifics about the product but one could imagine that the company may be planning to sell an Away toiletry kit. Away, which started as a small company of only 15 to 20 employees around 15 months ago, has now grown to 66 employees and is based in New York. To find what the consumers actually require or look for, the startup initially focuses on customer surveys.
As for price, the carry-ons luggage pieces cost around $225 to $245 whereas the checked bags cost over $275 to $295. In addition to this, the goods are sent straight from the company, instead of any third-party retailer.