Kombucha company doubles its size, launches Series A round

BOULDER — Locally made kombucha startup Rowdy Mermaid is undergoing a growth spurt, doubling in size after just a few months, raising six-figures in venture capital and now seeking a Series A of $2 million.

But ask CEO and founder Jamba Dunn just why his company is taking off, and he’ll tell you he’s not quite sure.

“That’s the question we’ve all been asking lately,” Dunn said in a phone interview with BizWest. “But I’ll tell you what others have told us. We came into the industry knowing that there were a lot of kombuchas sold for health benefits solely, but they actually were high in sugar and high in acids. There was all this hidden information and companies didn’t put their ingredients on the labels.”

But Rowdy Mermaid, a name which Dunn said came from his daughter, looked to change that.

“We were the first to list all the ingredients on the labels, and one of a couple of companies that used fresh adaptogenic herbis in our kombucha. We don’t make claims about health benefits. We just allow our consumers to make their own decisions. …. A lot of kombucha companies are funded now, and there’s a feeling of inauthenticity and that it’s all about making money. But stores and the public want authenticity in food, and that’s what we offer as well.”

That mentality is paying off for the company. It recently added another 6,000 square feet to its production facility, after moving from 900 square feet to 6,000 square feet just a few months ago. On May 18, the company filed a Form D with the SEC saying it had raised $350,000 in capital, which went to helping the company expand.

But Rowdy isn’t done growing. Dunn said he expects the company to skyrocket in the next three to five years — and is preparing for his business to be a $40 million company.

To jump start that, he’s seeking a Series A round of $2 million, which will go to hiring a chief operations officer so Rowdy Mermaid kombucha can be distributed at more stores.

In addition to hiring a new C-suite executive, Dunn said he wants to use the capital to help the brand “grow up,” redesigning the flavors and dialing in the packaging design.”

“It’s surreal even saying these numbers out loud,” Dunn said. “It felt like just a little while ago I was in my garage. And just a couple months ago it was only a few of us working for the company, where three of us shared one plastic desk with two computers…. But I’m so excited about it. It’s not about the money, it’s about the product. It’s just awesome.”

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