An online apparel brand founded by a mother and daughter duo has raised new funding to expand.
Lulus announced it has closed a $120 million investment from later-stage venture capital and growth equity firm IVP, and Canada Pension Plan Investment Board. The company said it took its first outside investment from H.I.G. Growth Partners four years ago, and “they have been valuable partners as we've grown the company significantly.”
“As we look to the next phase of our journey, we are excited to work alongside visionaries like IVP and CPPIB to help strategically guide us through this next wave of growth, said Colleen Winter, CEO of Lulus.
Winter co-founded the company with her mother, Debra Cannon, in 1996. It started out as a vintage boutique (in Chico, Calif.) and transitioned to purely online in 2008. After flying under the radar for years, Lulus has been attracting more and more attention, helped by its social media expertise.
The Lulus brand makes up the bulk of its offerings, along with a curated selection of on-trend designers and brands. The price points are affordable and run the gamut from $16 to $300.
The company utilizes a data driven approach to be able to deliver not only what customers want when they want it, but to be able to leverage scarcity and urgency of sale. The strategy has helped Lulus foster a highly-engaged and brand loyal millennial customer base. According to CNBC, the company has been profitable since its first year.
“Since our initial investment in 2014, Lulus has continued to demonstrate spectacular growth, and is now one of the leading digitally native brands in the United States,” said John Kim, a managing director with H.I.G. “We are very proud of the Lulus team as they have only begun to scratch the surface of the company's potential.”