Gen Z’s Parade Underwear Brand Valued at $140 Million in Latest Deal
(Bloomberg) -- Parade Inc. raised $20 million in new funding as the Gen Z-run underwear brand that has a large following online looks to expand into physical stores.
The Series B round was led by Stripes, a growth-equity firm that invests in consumer brands such as clothing company Reformation and plant-based milk producer Califia Farms. Parade, which has raised $43 million this year, is currently valued at $140 million.
The direct-to-consumer underwear maker is looking to capitalize on interest in youth-focused consumer companies, like makeup brand Glossier, which attracted investors in part by building a fan base online.
“We’ve established a cult-like following online but our next stage is really ubiquity,” Cami Téllez, Parade’s 24-year-old co-founder and chief executive officer, said in an interview. The company, which plans to open its first brick-and-mortar store in New York’s Soho neighborhood this November, is particularly focused on third-party retailers, which is “where we expect we’ll find the next 1 million customers.”
The lingerie market is anticipated to reach $325 billion globally by 2025, according to a report from Allied Market Research.
Parade, which has garnered widespread press coverage since it started in 2019, is expanding its product offerings, including a line of bras earlier this year. The New York-based company’s sales surged 500% this summer compared with a year ago.
Parade bills itself as a “community-first brand,” promoting ideas such as inclusion and sustainability. The company uses recycled materials in some products and compostable packaging. It plans on meeting more ambitious environmental goals in the next few years.
The company often has robust online marketing campaigns on services such as Instagram, which has become a go-to platform for direct-to-consumer purchases. In recent months, the underwear brand began moving more activity offline, hosting a series of in-person events called “the Summer of Parade.”
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