The founders of Australian luggage brand July have acquired a 20% stake in Melbourne-based Memobottle at a $10 million valuation.
July co-founders, Athan Didaskalou and Richard Li have invested in Memobottle in a personal capacity and will advise the business on product development, retail expansion, and international growth.
Founded in 2014 by Jesse Leeworthy and Jonno Byrt, Memobottle is best known for its distinctive flat, paper-sized water bottles, which are now sold through more than 2,000 retail locations across over 100 countries.
Didaskalou told SmartCompany the investment grew out of discussions that began nine months ago, when Memobottle’s founders approached him and Li for advice on retail, product development and partnerships.
“They’re less of a bottle business and more of a design business,” Didaskalou said.
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“The hardest part is not making the bottle. The hardest part is creating a relevant brand that people know and love.”
While the financial terms beyond the 20% stake and $10 million valuation have not been disclosed, Didaskalou said the investment would be directed towards expanding the business, rather than providing an opportunity for its founders to cash out.
“The idea is that we put that money towards growth, and we double down,” he said.
Li will focus on manufacturing, supply chains and operations, while Didaskalou will work on branding, marketing and partnerships.
Former Smart50 winner, July had previously partnered with the Australian Olympic team, Qantas, American Airlines and the Australian Open. Didaskalou said similar partnerships could help Memobottle grow overseas.
A new shape of growth
One of the first developments under the partnership is the launch of ‘memo Round‘, Memobottle’s first round-shaped and insulated water bottle, which will debut on Kickstarter on October 14.
It represents the company’s first move away from the flat-bottle design that made its name.
Featuring double-walled stainless steel insulation, a concealed 360-degree rotating mouthpiece and three removable components designed for easy cleaning, the new bottle design will be available in two sizes and eight colours.
Didaskalou said he and Li helped develop the new bottle, which he believes could attract a much wider customer base.
“When you sell a flat paper sized bottle, your market is instantly halved,” he said.
“And now that you’ve got the brand equity and the brand credibility behind you, what else can you make?”
The company has also expanded into lunchboxes with its ‘memobento’ range, which Didaskalou said attracted approximately $500,000 in Kickstarter pre-orders.
US expansion in focus
Despite Memobottle’s products being available in more than 100 countries, Didaskalou said the business has a relatively limited retail presence in the US, which he sees as a significant opportunity for growth.
More broadly, he said that Australian businesses have historically been too focused on defending their domestic market rather than pursuing international opportunities.
While younger startups are increasingly looking overseas, Didaskalou said established Australian businesses can become comfortable operating in a relatively small market.
“The real growth is in being big in the US, being big in Asia,” he said.
“Australia’s a fantastic market, but it’s almost like a global test bed.”
“What can the evolution of that brand be with a little bit of production and marketing smarts behind it?” he said.