Proof of the millennial spending power: Online fashion brand Lulus announced today that it has closed a $120 million investment from venture capital firm IVP and the Canada Pension Plan Investment Board.
The fashion and lifestyle e-tailer, founded by mother-daughter duo Debra Cannon and Colleen Winter in 1996, began as a vintage boutique in Chico, California, that went solely online a decade ago. Now, it boasts a loyal following of 1.3 million followers on Instagram, with its latest fundraising effort a testament to investors’ trust in the purchasing power of trend-savvy millennial consumers.
“Lulus’ proven track record as a successful retailer targeted to millennial women and as an early participant in the e-commerce space demonstrates their ability to thrive in the rapidly changing retail segment where customers are increasingly shopping online,” said Poul Winslow, a managing director at CPPIB.
Four years ago, the company received its first outside investment from VC firm H.I.G. Growth Partners, which aided in its expansion to become one of the most recognized digitally native brands in the country. As part of its new investment, IVP general partner Eric Liaw will join Lulus’ board of directors.
“What Colleen, Debra and the Lulus team have been able to accomplish over the years is nothing short of incredible,” Liaw said. “From humble beginnings in Chico, today they serve customers worldwide. We are honored to join them to help expand the company in the years ahead.”
Winter added in the statement: “My mother and I started Lulus together and are extremely proud of how the company has been able to delight millions of women over the last 20 years.”
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