Kim Kardashian's Apparel Company Skims Reportedly Reaches $4B Valuation in $270 Million Funding Round

(MT Newswires) -- Apparel company Skims has reportedly reached $4 billion in valuation with the latest financing round, according to media reports Wednesday.

The four-year-old shapewear brand co-founded by Kim Kardashian with her business partner Jens Grede has raised $270 million in a funding round led by Wellington Management Group along with Greenoaks Capital Partners, Bloomberg News said Wednesday citing an e-mailed statement from Skims. Existing investors D1 Capital Partners and Imaginary Ventures also participated in the round, according to a separate report from The New York Times.

The total amount that the company has hauled in from investors that include D1 Capital Partners and Imaginary Ventures currently stands at $670 million, according to the Bloomberg report. The company intends to allocate the proceeds from the funding to new product development, expansion into new categories and launching of company-owned shops, Bloomberg said.

Last year, Skims raised $240 million in a series B funding round, which valued the company at $3.2 billion. Lone Pine Capital led the round with participation from D1 Capital and existing backers Thrive Capital, Imaginary Ventures and Alliance Consumer Growth, according to previous media reports.

Imaginary Ventures was one of Skims' earliest investors, leading a seed round in the company in 2019. It was followed by a $154 million series A round led by Thrive Capital and the $240 million series B round led by Lone Pine Capital, according to a PitchBook report.

"Kim and I can envision a future where years from today there's a Skims store anywhere in the world you'd find an Apple store or a Nike store," Bloomberg News quoted Grede as saying, adding that the company's chief executive said Skims is expecting potential net sales of $750 million this year.

Skims is considering physical retail with a plan of opening the first flagship store in 2024 in Los Angeles and New York City as well as expanding to men's clothing, The New York Times said. It began as a shapewear seller and has eventually branched out to clothing categories such as loungewear and swimwear, according to the New York Times.

Skims could not be immediately reached for comment by MT Newswires.

Copyright © 2023 MT Newswires. All rights reserved. MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.