Kim Kardashian’s Skims raises new funding at $5 billion valuation

Skims, based by actuality TV star and entrepreneur Kim Kardashian together with Jens Grede, mentioned on Wednesday it had raised $225 million in new capital, valuing the shapewear label at $5 billion.

Kardashian’s ventures, together with her cosmetics model SKKN, have attracted younger customers and benefited from her huge social media following.

Other celebrity-backed manufacturers have additionally drawn enterprise capital funding, as companies guess on the advertising energy and built-in audiences of high-profile founders to drive client demand.

Elf Beauty agreed to purchase Hailey Bieber’s make-up and skincare model, Rhode, for about $1 billion in May, whereas Rihanna-backed Fenty Beauty and Khloé Kardashian’s Good American have acquired VC {dollars}.

The newest fundraising within the attire firm was led by funding big Goldman Sachs Alternatives with participation from BDT & MSD Partners’ affiliated funds.

Skims mentioned it plans to make use of the new capital to broaden its intimates and shapewear strains, develop additional into attire and activewear and improve its retail presence and worldwide progress.

“(The fundraise) adds to an already strong investor roster, including Thrive Capital and Greenoaks, positioning Skims as a credible IPO candidate in the future,” mentioned Eric Bellomo, senior e-commerce analyst at PitchBook.

Skims, based in 2019, mentioned it’s on monitor to exceed $1 billion in web gross sales in 2025.
Earlier this yr, Coty bought a 20% stake in Kardashian’s magnificence model to Skims, consolidating the 2 companies underneath a single model.

The firm has additionally partnered with sportswear big Nike to launch activewear for ladies.

“By leveraging both Kardashian’s global celebrity and distribution advantages through partnerships… Skims is expanding its product ecosystem. The recent SKKN by Kim buyback underscores this integrated approach, aligning apparel, beauty, and lifestyle,” Bellomo mentioned.

Skims, recognized for its deal with inclusive sizing, now operates 18 retail shops within the U.S. and two franchise areas in Mexico. The firm mentioned it’s laying the groundwork to be a predominantly bodily enterprise over the subsequent few years.