- ThirdLove announced on Tuesday that it has raised $US55 million in a round of funding led by consumer-focused private-equity firm L Catterton. The C EOs of 23andMe and YouTube were among the other investors.
- ThirdLove said in a press release that it was not looking for new capital and that the round was put together preemptively by its investors.
- The company said that the new funding will be put toward expanding its assortment and improving the technology that it uses to help shoppers find the right size online.
A group of investors just made an expensive bet on ThirdLove in a big vote of confidence that the up-and-coming online underwear brand can take on Victoria’s Secret.
On Tuesday, ThirdLove announced that it has raised $US55 million in a round of funding led by consumer-focused private-equity firm L Catterton.
Angel investors Anne Wojcicki, CEO of genetic testing company 23andMe, and her sister Susan Wojcicki, CEO of YouTube, were among the other investors.
This investment is a large step up from the $US13.6 million in funding it has received since launching in 2013. The capital will likely help it to propel into the next stage of growth as it looks to become the US’ favourite underwear brand.
“The new funds allow ThirdLove to continue reaching more women by expanding its sizes, styles, product offerings, and fit technologies, helping the brand to deliver on its promise to make products for every woman’s body,” co-founder and co-CEO Heidi Zak said in a statement on Tuesday.
Earlier this month, the company launched eight new sizes, bringing its assortment to 78 bra sizes in total.
Zak continued: “This new funding round allows us to continue delivering on ThirdLove’s mission to create a bra for everybody. We are more dedicated than ever to giving all women the level of choice they deserve.”
ThirdLove is a private company and is not required to report its financials. In an accompanying report, the company outlined a 180% annualized growth rate over the last four years and said it has sold over four million bras since launching.
ThirdLove entered a marketplace that has long been – and largely still is – dominated by Victoria’s Secret. It has a long way to go before it reaches the size of Victoria’s Secret, which has over 1,000 stores in North America and had pulled in over $US4.8 billion in sales in the region as of November 2018. However, Victoria’s Secret’s market share in the US has fallen by around 9% in the past two years.
If history has taught us anything, however, it is that no retailer should rest on its laurels or rely on its size to stay powerful.