A direct-to-consumer lingerie startup has raised $55 million in a funding round that includes investors like the former AOL CEO Tim Armstrong and broadcaster Katie Couric, according to reports.
“ThirdLove is the triple threat,” Armstrong said in an email to TechCrunch. “They have great margins, own the entire customer relationship and the full stack of data behind it, and they’re in a low competition category serving the largest customer base of commercial people — women.”
DTC companies are one of the fastest growing eCommerce sectors, and ThirdLove is no exception. The company began with just bras but has expanded to include lingerie and underwear for women of all shapes and sizes.
The company uses smartphone technology to suggest sizes, and one of the company’s CEOs, Heidi Zak, said the money will be used to help ThirdLove move beyond its current range of 78 offered sizes. Zak started the company with her husband, David Spector, and both are former Google executives.
Zak often uses the phrase “a bra for every body,” and wants to move in retail, international markets and category expansion, like athletic and swimwear.
The funding round brings the company’s valuation to about $750 million, which is impressive considering the company has only raised $68 million since 2013. The startup generates upwards of $100 million in revenue a year, and 12 million women so far have used the company’s “Fit Finder” tool, which helps with sizing.
Other investors include investment bank Allen & Company, co-leading the round with L. Catterton, 23andMe CEO Anne Wojcicki and former U.S. Alibaba Chairman Michael Zeisser.
Wojcicki explained her support in a statement. “I’m a big fan of ThirdLove’s mission to build a brand for every woman, regardless of her shape, size, age, ethnicity, gender identity, or sexual orientation,” Wojcicki said. “ThirdLove promotes reality over fantasy and shows the spectacular beauty of all sizes, shapes and colors of women.”