By Manya Saini (Reuters) -Skims, founded by reality TV star and entrepreneur Kim Kardashian along with Jens Grede, said on Wednesday it had raised $225 million in new capital, valuing the shapewear label at $5 billion. Kardashian’s ventures, including her cosmetics brand SKKN, have attracted young shoppers and benefited from her vast social media following. […]
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Kim Kardashian’s Skims raises new funding at $5 billion valuation
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By Manya Saini
(Reuters) -Skims, founded by reality TV star and entrepreneur Kim Kardashian along with Jens Grede, said on Wednesday it had raised $225 million in new capital, valuing the shapewear label at $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 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 $1 billion in May, while Rihanna-backed Fenty Beauty and Khloé Kardashian’s Good American have received VC dollars.
The latest fundraising in the apparel company 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 fundraise) adds to an already strong investor roster, including Thrive Capital and Greenoaks, positioning Skims as a credible IPO candidate in the future,” said Eric Bellomo, senior e-commerce analyst at PitchBook.
Skims, founded in 2019, said it is on track to exceed $1 billion 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 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. The recent SKKN by Kim buyback underscores this integrated approach, aligning apparel, beauty, and lifestyle,” Bellomo said.
Skims, known for its focus on inclusive sizing, now operates 18 retail stores in the U.S. 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.
(Reporting by Manya Saini in Bengaluru; Editing by Vijay Kishore)