Investment of $20M in Series B funding boosts Parade's drive towards brick-and-mortar retail
In the ever-evolving world of fashion, several direct-to-consumer (DTC) brands are making a significant impact in the undergarment market. One such brand leading the charge is Parade, a company that recently secured $20 million in Series B funding led by Stripes.
Parade, which initially made a splash with its comfortable and stylish underwear, is now setting its sights on growth. The brand is planning to expand its product assortment and offline presence, with an aim to achieve fourfold revenue growth by the end of 2021.
The brand's recent ventures include the unveiling of a collection of bralettes in April, marking its first foray into a new product category. To further engage with customers, Parade has hosted in-person events in Los Angeles, New York, and Austin this year.
Joining Parade in the undergarment market are brands like Skimpies, Textelo, Cou Cou Intimates, and a host of sustainable brands. Skimpies, launched in September 2024, has gained popularity through TikTok live sales and is now expanding into off-price retail chains. Textelo, a growing DTC brand, emphasizes comfort, style, and innovation, while Cou Cou offers sustainable and comfortable cotton undies, using 100% GOTS-certified organic fibers.
Brands like Pact, Organic Basics, and MATE the Label, which focus on sustainable materials and ethical production practices, are also expanding their presence. This trend of DTC companies entering and expanding in the undergarment market is driven by unique selling propositions, strong social media presence, and consumer demand for sustainable products.
Meanwhile, established brands are also adapting to meet changing consumer preferences. Victoria's Secret, for instance, is changing course to attract consumers seeking inclusivity and diversity. ThirdLove, another DTC brand, rebranded in August to focus on fit, comfort, and sexiness.
Stripes, the venture capital firm that led Parade's Series B funding, has also invested in brands such as On Running, Reformation, and Siete. With this backing, Parade plans to "double down" on category expansions and will open its first physical "experience" in SoHo, New York, next month.
In 2021, Parade has raised a total of $43 million and is now valued at $140 million. As the undergarment market continues to evolve, it will be interesting to see how these brands continue to innovate and capture consumer attention.
Parade, having secured funding from Stripes, plans to harness artificial intelligence and space technology to innovate its products, aiming for a fourfold revenue growth by 2021. In the future, we might even witness a 'war' of creativity in the undergarment market as more brands adopt advanced technologies to cater to the growing demand for sustainable and inclusive fashion.
