By CultureBanx Team
- Rihanna’s Savage X Fenty mulling a potential $3B IPO with Goldman Sachs and Morgan Stanley
- Savage X Fenty raised a $115M Series B funding round, at a $1B valuation earlier this year
Rihanna’s Savage X Fenty’s digital subscription business model could be hitting another major milestone taking its talents to the public markets. The brand is already steeply versed in the diverse equity of feeling sexy, now there is a potential $3 billion IPO looming, according to Bloomberg. Rihanna reportedly owns a 30% stake in the brand, and is in early discussions with Goldman Sachs along with Morgan Stanley to further cement her billionaire status.
Why This Matters: Rihanna’s umbrella (ella, ella) of product lines under her Fenty brand have been extremely successful, with her lingerie company sitting squarely at the center of business and culture in the $13.1 billion U.S. women’s underwear sector. This has led to Savage x Fenty partner LVMH (LVMUY -0.57%) to completely lean in on her diverse business model. Last year, the lingerie brand posted revenue growth of more than 200%, and “increased its active VIP member base by more than 150%,” according to a statement from the company.
Back in February, Savage X Fenty raised a $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.
The lingerie juggernaut’s latest round was led by Neuberger Berman, and other investors included Jay-Z’s Marcy Venture Partners, and Multiply Group, contributed $25 million, as well as the Abu Dhabi Growth Fund. Previous investors Avenir Growth Capital, and TriplePoint Ventures were not mentioned in this round.
What’s Next: Currently, no final decision or timing for an IPO has been decided. However, the company plans to open 10 physical stores in 2022. Savage X Fenty debuted its first storefront in Las Vegas with a tech enabled fit experience where customers can receive a body scan with augmented reality, which then provides product recommendations.
“We wanted to be able to connect with our customers in real life and give them something they have never seen before,” Rihanna said in a statement.
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