A New Unicorn Takes Shape
A richly valued fundraising deal cements Kim Kardashian’s billionaire status.
Pandemic lockdowns that consigned form-fitting clothing to the back of many closets would seem disastrous to Skims, the start-up that made its name with shapewear. But the brand has helped make Kim Kardashian West, its co-founder, a billionaire, DealBook’s Michael de la Merced reports.
Skims has raised $154 million at a $1.6 billion valuation, Michael is the first to report. The round was led by Thrive Capital, the venture firm that has backed the likes of Warby Parker and Glossier, and it included the existing investor Imaginary Ventures.
The deal cements Ms. Kardashian West’s status as a billionaire, after Forbes anointed her as such this week, based on a far lower valuation for Skims. She will remain the single biggest shareholder after the fundraising round, and with her business partner, Jens Grede, will control a majority stake.
But how will shapewear fare after the pandemic? Skims is betting on renewed interest in going-out clothing, with Mr. Grede expecting a “rebalancing” of sales across the company’s categories (read: an uptick in body-hugging fashions). A well-timed introduction of loungewear helped Skims offset the 30 percent drop in shapewear across the industry last year, according to NPD.
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.
Ms. Kardashian West isn’t ruling out a sale down the road, so long as she still has a big role in operations. “I think I’m open to the conversation, for sure,” she said. But “I would never want to give up my process. I would hope that whoever we partner with in a sale one day would believe in that, too.”