Gymshark seeks further growth funding
‘Instagram brand’ Gymshark is expected to announce a new funding round that will give it a valuation of about £500 million, as it continues to expand the business following soaring sales.
The gymwear brand is one of the UK’s fastest-growing firms, making a profit of £18.1 million last year on sales of £103.2 million. Its success has been fuelled by its use of social media networks, particularly Instagram, to reach out to influencers and promote its leggings and other activewear pieces.
According to a report from the Mail on Sunday, blue chip investors including private equity giants Bain Capital and KKR are keen on investing on the growing business, but Gymshark prefers to get funding from smaller investment firms.
Created in 2012, Gymshark has recently opened a 55,000 sq ft innovation hub complete with a photography studio and an R&D factory in Birmingham. It has also partnered with Innovation Birmingham on a tech startup programme offering free co-working space to digital tech SMEs in the West Midlands.
The company’s value had been estimated at between £300 million and £400 million last year.
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