Skims Raises $225 Million at $5 Billion Valuation in Major Fashion Funding Round

Kim Kardashian's shapewear and apparel brand Skims has achieved a significant milestone in the fashion industry, securing $225 million in new funding that values the company at an impressive $5 billion. The funding round, announced on Wednesday, represents a major vote of confidence in the celebrity-founded brand's growth trajectory and market position.

Investment Details and Strategic Backers

The latest fundraising was led by investment giant Goldman Sachs Alternatives with participation from BDT & MSD Partners' affiliated funds. This substantial investment adds to Skims' already strong investor roster, which includes Thrive Capital and Greenoaks. According to Eric Bellomo, senior e-commerce analyst at PitchBook, this positions Skims as a credible IPO candidate in the future, signaling the company's maturation from a celebrity-backed startup to a serious player in the fashion industry.

Growth Trajectory and Financial Performance

Founded in 2019 by reality TV star and entrepreneur Kim Kardashian along with Jens Grede, Skims has demonstrated remarkable growth in just six years. The company revealed it is on track to exceed $1 billion in net sales in 2025, highlighting the brand's strong market acceptance and consumer demand. This performance is particularly notable given the competitive landscape of the shapewear and intimate apparel market.

Strategic Expansion Plans

Skims plans to use the new capital to broaden its intimates and shapewear lines while expanding further into apparel and activewear categories. The company also aims to enhance its retail presence and accelerate international growth. Currently, Skims operates 18 retail stores in the U.S. and two franchise locations in Mexico, with plans to become a predominantly physical business over the next few years.

Brand Integration and Partnerships

The company has been strategically consolidating its brand ecosystem. Earlier this year, Coty sold a 20% stake in Kardashian's beauty brand to Skims, bringing the two businesses under a single brand umbrella. Additionally, Skims has partnered with sportswear giant Nike to launch activewear for women. According to Bellomo, "By leveraging both Kardashian's global celebrity and distribution advantages through partnerships... Skims is expanding its product ecosystem."

Skims' success story reflects the growing trend of celebrity-backed brands attracting significant venture capital investment. Investors are increasingly betting on the marketing power and built-in audiences of high-profile founders to drive consumer demand. The brand's focus on inclusive sizing and strategic expansion positions it well for continued growth in the competitive fashion market.