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.
“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.
The latest fundraising in the apparel company was led by investment giant Goldman Sachs Alternatives with participation from BDT & MSD Partners’ affiliated funds.