Reality star Kim Kardashian's Skims raises new funding at $6.5 billion valuation
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Kim Kardashian's ventures have attracted young shoppers and benefited from her vast social media following.
PHOTO: AFP
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LOS ANGELES - Skims, founded by American reality TV star and entrepreneur Kim Kardashian along with her business partner Jens Grede, said on Nov 12 it had raised US$225 million in new capital, valuing the shapewear label at US$5 billion (S$6.5 billion).
Kardashian’s ventures, including her cosmetics brand SKKN, have attracted young shoppers and benefited from her vast social media following.
Other celebrity-backed brands have also drawn venture capital (VC) investment, as firms bet on the marketing power and built-in audiences of high-profile founders to drive consumer demand.
American cosmetics company Elf Beauty agreed to buy model Hailey Bieber’s makeup and skincare brand, Rhode, for about US$1 billion in May.
Fenty Beauty, backed by Barbadian singer Rihanna, and American media personality Khloe Kardashian’s fashion brand Good American have received VC dollars.
The latest fundraising in Skims was led by investment giant Goldman Sachs Alternatives with participation from BDT & MSD Partners’ affiliated funds.
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.
“(The fundraising) adds to an already strong investor roster, including Thrive Capital and Greenoaks, positioning Skims as a credible IPO candidate in the future,” said Mr Eric Bellomo, senior e-commerce analyst at PitchBook.
Skims, founded in 2019, said it is on track to exceed US$1 billion in net sales in 2025.
In March, American beauty company Coty sold a 20 per cent stake in SKKN to Skims, consolidating the two businesses under a single brand.
Skims has also partnered with sportswear giant Nike to launch activewear for women.
“By leveraging both Kardashian’s global celebrity and distribution advantages through partnerships... Skims is expanding its product ecosystem,” Mr Bellomo said. “The recent SKKN By Kim buyback underscores this integrated approach, aligning apparel, beauty and lifestyle.”
Skims, known for its focus on inclusive sizing, now operates 18 retail stores in the United States and two franchise locations in Mexico.
The company said it is laying the groundwork to be a predominantly physical business over the next few years. REUTERS
