(Bloomberg) -- Cirkul, which makes cartridges and bottles to add flavors to water, is exploring raising capital ahead of a future initial public offering, according to people with knowledge of the matter.
The Tampa-based company has begun discussions about adding strategic and institutional investors, said the people, all of whom requested anonymity discussing confidential information. Terms of the capital raise, such as valuation and timing of a potential IPO, haven’t been finalized.
Cirkul, originally a direct-to-consumer brand that gained popularity on social media platforms such as TikTok, was co-founded by Chief Executive Officer Garrett Waggoner and president Andy Gay while the duo were students at Dartmouth College.
Read more: Dartmouth Grads’ Water Brand Rides TikTok Fame to Unicorn Status
In an interview last year, the founders said Cirkul’s arrival on the shelves of Walmart Inc. helped the startup raise $70 million in a funding round that boosted its valuation more than 500%.
It reached a valuation of $1.07 billion in June 2022 after receiving backing from investors including New York-based SC Holdings. The company also counts family offices ESAS Holding and Kaulig Capital, as well as Schecter Private Capital and AF Ventures, as investors, according to data compiled by Pitchbook.
The company makes cartridges with more than 100 flavors such as passion orange guava and raspberry lime, and its reusable water bottles save over 250,000 plastic bottles from waste per year, according to Cirkul’s website.
(Adds details in fourth paragraph. A previous verison of this story corrected the spelling of the company’s name.)
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