Minneapolis-based Lunr Capital Inc. has $100 million to give to emerging consumer brands.
The debt funds are non-dilutive and aimed at inventory financing for companies expanding into retail. They were secured from i80 Group, a New York City-based investment firm.
Lunr's funds address a critical gap in the retail fintech landscape, according to the company, and aim to support retail innovation by giving small companies a boost toward bringing their products to the shelves of brick-and-mortar stores like Target or Whole Foods. Lunr also offers a data toolkit to support those companies.
Lunr said the funding is about democratizing consumer products and bringing more founders into the fray. In the past, retail innovation came from the biggest companies, like General Mills and Procter & Gamble, said Lunr Chief Revenue Officer Erin Wall. “Now a lot of innovation is coming from Tiktok and Instagram. The barriers to entry to enter the market have all lowered,” she said.
More than half the companies in Lunr’s portfolio are run by people of color and women, which Wall said also helps support retailers’ goals. Lunr is helping fuel the expansion of diverse products and perspectives in retail.
The money is especially important since it’s become harder for young companies to be bankable, Wall said.
Lunr’s leadership team of retail executives recognizes the challenges digital brands face as they expand into brick-and-mortar. In just over a year, Lunr has built a portfolio of partners across consumer packaged goods, apparel, health and wellness, sporting goods, toys and more.
Lunr is also kicking off a $6 million seed round to fuel development of its analytics and funding platform.
Andy Cox, Lunr CEO, said in an announcement that the money validates the market potential for Lunr’s inventory financing solutions.
“As more digital brands make the leap to brick-and-mortar, Lunr stands ready with the expertise and capital they need to seamlessly scale and transform their business,” Cox said in the announcement. “We are excited to amplify our efforts and empower even more remarkable founders to reach their fullest potential."
