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Skims, founded by reality TV star and entrepreneur Kim Kardashian along with CEO Jens Grede, said on Wednesday it had raised $225mn in new capital, valuing the shapewear label at $5bn.
Kardashian’s ventures, including her cosmetics brand SKKN, have attracted young shoppers and benefited from her vast social media following. Similarly, other celebrity-backed brands have also drawn venture capital investment, as firms bet on the marketing power and built-in audiences of high-profile founders to drive consumer demand.
Elf Beauty agreed to buy Hailey Bieber’s makeup and skincare brand, Rhode, for about $1bn earlier this year, while Rihanna-backed Fenty Beauty and Khloé Kardashian’s Good American have also drawn venture capital funding.
Skims said it plans to use the new capital to broaden its intimates and shapewear lines, expand further into apparel and activewear and enhance its retail presence and international growth.
“We can’t wait to take Skims to the next level as we continue to innovate and set the standard for our industry,” Kardashian, who serves as chief creative officer, said in Wednesday’s press release.
“This milestone reflects continued confidence in our long-term vision and coupled with disciplined execution, positions Skims to unlock its next phase of growth,” Grede said in a statement.
Skims, founded in 2019, said it was on track to exceed $1bn in net sales in 2025. Earlier this year, Coty sold a 20% stake in Kardashian’s beauty brand to Skims, consolidating the two businesses under a single brand.
The company, known for its focus on inclusive sizing, now operates 18 retail stores in the US and two franchise locations in Mexico. Skims said it was laying the groundwork to be a predominantly physical business over the next few years.
The company has also forged a partnership with sportswear giant Nike to launch activewear for women.
After the latest fundraising, Skims is now larger than its competitors, Victoria’s Secret and Under Armour, combined. Victoria’s Secret has a market capitalization of $2.86bn, and Under Armor is worth $1.98bn.
The latest fundraising in the apparel company was led by investment giant Goldman Sachs Alternatives with participation from BDT & MSD Partners’ affiliated funds.
Jens has said that Skims “deserves” to be a public company. But in an interview with WWD late last year he suggested that plans for a sale were not imminent. “We might make that position in the future, but that’s not what I’m thinking about,” he said.
After the latest fundraising, Kardashian, 45, is now worth $1.9bn, according to Forbes, with the deal adding $200m to her fortune.
