Kim Kardashian's Skims valued at $1.6 billion
Skims, the shapewear brand founded by Kim Kardashian, raised $154 million led by Thrive Capital at a $1.6 billion valuation.
Why it matters: This is what you get when the social media influencer finds product/market fit.
One source calls Kardashian a "customer acquisition machine," which means Skims hasn't required much marketing spend to take a direct-to-consumer bite out of Victoria's Secret, which already was struggling with brand appeal and its physical retail footprint.
- Other company investors include Imaginary Ventures and Alliance Consumer Growth.
- Word is that Thrive, the VC firm led by Joshua Kushner, approached Skims, rather than the other way around, with the round including both primary and secondary capital.
Bottom line: "Skims has defined itself by aiming for a younger market and emphasizing inclusivity, offering nine sizes and as many skin-tone shades. It reported $145 million in sales last year and has sold more than four million units since its founding in late 2019." — Michael de la Merced, NY Times