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Skims valued at $5 billion after new funding round as it accelerates store expansion - CNBC

Lau Chi Fung

— 2 min read

Kim Kardashian's Skims Brand Raises $225 Million in Funding, Valued at $5 Billion

In a significant development for Kim Kardashian's entrepreneurial ventures, her shapewear and apparel company, Skims, has secured $225 million in new funding. This influx of capital comes from Goldman Sachs Alternatives, which now holds a stake in the business.

A Growing Presence in the Lingerie Market

Skims was founded by Kim Kardashian West in 2019 with the goal of providing comfortable and inclusive lingerie options to women of all shapes and sizes. The brand has quickly gained popularity, thanks in part to Kardashian's massive social media following and her commitment to promoting body positivity.

Increased Valuation

The new funding round brings Skims' valuation to a staggering $5 billion. This represents a significant increase from the company's estimated worth of around $4 billion last year. The boost in value is likely due to Skims' growing popularity, expanding product lines, and increasing sales.

Goldman Sachs Alternatives Takes a Stake

Goldman Sachs Alternatives, a subsidiary of Goldman Sachs Group Inc., has led the latest funding round for Skims. This move marks a significant investment in the company's future growth and development. Goldman Sachs Alternatives has a reputation for investing in innovative and high-growth businesses.

Funding to Fuel Growth

The $225 million injection will be used to fuel Skims' continued growth and expansion. The funds will likely be allocated towards various initiatives, including:

  • Product Development: Skims plans to expand its product lines, introducing new styles and designs that cater to diverse customer needs.
  • Marketing and Advertising: The company will invest in targeted marketing campaigns to increase brand awareness and drive sales.
  • E-commerce Enhancements: Skims aims to enhance its e-commerce platform, providing customers with a seamless shopping experience.

Implications for Kim Kardashian West

The latest funding round is a testament to Kim Kardashian West's entrepreneurial prowess. As the founder of Skims, she has successfully built a brand that resonates with women worldwide. The increased valuation and funding will likely have a positive impact on her personal wealth, further solidifying her position as one of the most successful celebrity entrepreneurs.

Industry Implications

Skims' success in the lingerie market has sent ripples throughout the industry. Other companies are taking note of the brand's popularity and are adapting their strategies to stay competitive. The funding round is also a reminder of the importance of innovation and risk-taking in entrepreneurship, as it highlights the potential for significant returns on investment.

Conclusion

Kim Kardashian's Skims brand has achieved another major milestone with its latest funding round. Valued at $5 billion, the company is poised for continued growth and expansion. As a leader in the lingerie market, Skims is setting the standard for comfort, inclusivity, and fashion-forward designs. With Goldman Sachs Alternatives on board, Skims is ready to take on new challenges and further establish its position as a household name.

Key Takeaways

  • Kim Kardashian's Skims brand has raised $225 million in funding from Goldman Sachs Alternatives.
  • The company's valuation now stands at $5 billion, an increase of around $1 billion from last year's estimate.
  • The funding will be used to fuel growth and expansion through product development, marketing, and e-commerce enhancements.
  • Skims' success in the lingerie market has sent ripples throughout the industry, highlighting the importance of innovation and risk-taking.

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