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Fashion, culture and private equity have collided with Rihanna’s successful Savage x Fenty hitting another major milestone by raising its $115 million Series B funding round, at a $1 billion valuation. Private equity firm L Catterton, in which LVMH has a stake in helped the brand secure this bag for its upcoming retail expansion, and to funnel it into a line of athletic wear. Rihanna’s umbrella (ella, ella) of product lines under her Fenty brand have been extremely successful, with her lingerie brand sitting squarely at the center of business and culture in the $13.1 billion U.S. women’s underwear sector, leaving Savage x Fenty partner LVMH to completely lean in on her diverse business model.
The Breakdown You Need To Know:
The lingerie brand posted revenue growth of more than 200% last year, and “increased its active VIP member base by more than 150%,” according to a statement from the company. CultureBanx reported that Savage x Fenty is in a position to be the global lingerie market leader by 2025, the same year that women’s activewear is expected to reach a $216.9 billion value. Rihanna’s brand has proven that diversity and inclusion in sizing, access, and marketing can lead to an even greater goal, equity in feeling sexy.
“Following the completion of the fundraising round where L Catterton took a stake in Savage X Fenty, LVMH and Rihanna reaffirmed their ambition to concentrate on the growth and the long-term development of Fenty ecosystem focusing on cosmetics, skincare, and lingerie,” LVMH and Rihanna added in a statement to WWD.
Culture Beauty Building:
All leading women’s athletic wear brands like Athleta and Lululemon should take notice of this deal and Rih Rih moving into their market, just look at how she disrupted the beauty sector. In 2018, the Fenty beauty line generated $558 million in its first full year in operation.
Companies like LVMH are constantly mining new ways to get a larger share of the $445 billion beauty industry that’s expanding at 3% a year. Forbes estimates that Rihanna’s stake is worth an estimated $375 million. Not to mention that Fenty Skin racked up sales of $30 million in less than four months on its e-store, according to WWD.
Savage x Fenty has raised $185 million to date, and prior to the new funding, Forbes estimated Rihanna’s stake to be worth about $80 million, that number has only increased now. Return investors such as Jay-Z’s Marcy Venture Partners, Avenir Growth Capital, TriplePoint Ventures, along with new investors including Sunley House Capital, part of Advent International participated in this round. The company also clarified that Goldman Sachs only acted as exclusive placement agent for the Series B financing.
Less than two years after Rihanna’s high-end Fenty fashion brand launched with LVMH, it’s now being put on “hold” to focus on expanding the lingerie brand. The coronavirus crisis made it difficult to create eight ready-to-wear collections a year while operating remotely. The global fashion industry experienced a 93% drop in profit in 2020. Rihanna made history as the first woman to create an original brand at LVMH and the first woman of color at the top of an LVMH maison. The e-commerce site for Fenty fashions will go dark by the end of February or early March.