The Australian Business Growth Fund has slip, slop, slapped a $10 million investment into Solbari, the Melbourne-born brand dedicated to stylish but highly sun-protective clothing.
Solbari was founded in 2014 by Johanna Young, who departed a career in finance to meet a gap in the market: lightweight and breathable garments designed to cut down on ultraviolet (UV) radiation exposure.
Australia faces uniquely high levels of UV exposure, which contributes to one of the highest incidences of skin cancer in the world.
Ultra-protective sunscreens are easy to find on supermarket shelves, but the high temperatures associated with the Australian summer make full clothing coverage a hard sell for many.
Solbari’s product line, spanning long-sleeve shirts to shawls, hats, and swimwear, promises extreme UV protection without compromising on wearability in the hot summer months.
Since its launch, Solbari has reached over 300,000 customers and claims sales in 160 countries.
The company is also B Corp certified, claiming its sun-protective ethos as one of several ways it hopes to drive social and environmental change.
The Australian Business Growth Fund (ABGF) investment — announced on the summer solstice, the day with the most daylight hours on the calendar — will propel the brand at home and abroad, said Ghazaleh Lyari, co-head of investments at ABGF.
Household consumers are not the only factor that drove the ABGF’s investment and new minority stake in the business.
Solbari’s business model has a “diverse potential for growth, opening the door to strategic partnerships that include retailers, corporates with stringent Occupational Health and Safety requirements and organisations whose employees work outdoors, such as council workers, construction workers, sports clubs, and educators,” Lyari said.
“ABGF’s expertise will ensure our journey as a global leader in sun protection continues,” said Young.
“Their strategic insights and networks, coupled with a deep understanding of our industry, will be instrumental in our next phase of growth.”
The Solbari investment is the ABGF’s tenth capital deployment, and the second towards an enterprise founded by a woman, after its October investment in Inskin Cosmedics.
The ABGF has now invested over $153 million into established medium-sized businesses, with the intention of propelling the ventures to even greater growth.
Along with Inskin Cosmedics, Solbari now joins a portfolio of companies including Hubbed, DIY Blinds, and Derwent Industries, among others.
Senior Business Journalist
Focused on the small business sector, David’s work covers the political, regulatory, and economic issues facing Australian entrepreneurs. Prior to joining SmartCompany, he was a reporter for Business Insider Australia. You can follow him on LinkedIn.
