On has grown rapidly in the past several years, attracting runners and casual wearers alike with its signature cushioning platform. In 2019, tennis star Roger Federer became an investor.
On Co-founder David Allemann told BoF the IPO will allow On to continue investing in innovation, in areas such as its cushioning and in sustainability efforts. Last year it introduced a fully recyclable shoe.
The funds will also go toward fueling On’s international expansion. The company already has a presence in 60 countries worldwide. On will focus on growing its audience in key cities around the world, such as London and Tokyo, as well as various cities in the US, On’s largest market. China, which On only entered in 2018, is also a top priority. Allemann said On’s sales in the country grew 300% in the first half of 2021 compared to the same time last year.
Though On launched in 2010 with the goal of making better shoes for runners, the company has begun branching out into other areas, such as all-day wear. Allemann believes the company is positioned to benefit from a long-term shift among shoppers toward more comfortable, casual dress. On, he said, has bridged the gap between a demanding performance audience and fashion shoppers.
”The connection is really innovation in performance technology,” Allemann said. “That really translates not just to sports achievement, it translates to comfort.”
With its upcoming IPO, the Roger Federer-backed Swiss sneaker upstart expects to raise as much as $622 million at a valuation above $6 billion on the back of its rapid growth and plans to push further into the lucrative lifestyle market.