Parade looks to physical retail as it raises $20M in Series B funding round

Dive Brief:

As more direct-to-consumer brands wade into the lingerie sector, DTC underwear brand Parade raised $20 million in Series B funding led by Stripes, according to a Wednesday press release shared with Retail Dive. The investment firm also funded other brands such as On Running, Reformation and Siete, per the announcement.
Parade has raised $43 million in 2021 and is now valued at $140 million. The company expects to achieve fourfold revenue growth by the end of 2021 and said it is progressing toward becoming carbon positive by 2025, according to the press release.
Next month, the company said it plans to open its first physical "experience" in SoHo, New York.

Dive Insight:

Parade is focused on growing its product assortment and its offline presence. Parade unveiled a collection of bralettes in April, its first new product category, and plans to "double down" on category expansions. The company also hosted in-person events in Los Angeles, New York and Austin this year.

"Since day one, we've made company decisions with and for our community. As our community grows and changes, we'll evolve with them into new product categories and new channels, both on and offline," Cami Téllez, founder and CEO of Parade, said in a statement. "We'll break boundaries in our pursuit to bring Parade to everyone, while continuing to fight for a more sustainable and inclusive future."

Parade isn't the only DTC brand pursuing brick-and-mortar expansion. In September, DTC intimates brand Knix announced plans to open its first U.S. store in Santa Monica, California, followed by San Diego and San Francisco stores. Beauty brand Glossier is also opening stores again after having to shutter its footprint last year.

Several other DTC brands have entered the undergarment space recently in pursuit of expansion themselves. Back in January, sock brand Bombas launched an underwear line complete with men's and women's styles. A few months later, Andie, a DTC swimwear company, unveiled its own intimates line, featuring two bralettes and three underwear styles.

As newcomers enter the underwear market, current brands have been working on updating their appeal to consumers. Victoria's Secret, a brand that has long dominated the women's undergarment market and has recently been disrupted by the slew of startups in the space, is changing course to attract today's consumers who seek inclusivity and diversity. ThirdLove, one of the DTC brands leading that disruption, rebranded in August to center on fit, comfort and sexiness.