Provenance SPV, a Beverly Hills-based growth equity investment firm, announced on Nov. 23 that it had invested $40 million in the Baldwin Hills-based company.
The funding will be used to increase MeUndies’ ability to reach customers in international markets and to allow the company to open physical stores, according to Provenance.
MeUndies launched in 2011 as an online-only underwear vendor. The company, which only sells products designed in-house, is known for a subscription payment option that allows customers to pay a membership fee and receive new underwear in the mail every month.
According to the company, it has sold more than 16 million pairs of underwear since launch. In 2013, MeUndies began carrying socks and now sells sleepwear and a host of accessories, including pet clothes and face masks.
Provenance founder Anthony Choe said in a statement that the investment firm had been impressed by the brand loyalty MeUndies has built among younger shoppers.
“MeUndies’ fun, creative print designs and affordable range of products resonate strongly with its core millennial and Gen Z audience, and the company’s ability to drive growth organically through its brand community is powerful,” Choe said.
The new investment represents a sizable chunk of the $48.9 million that MeUndies has raised since its launch, according to PitchBook Data Inc.
MeUndies Chief Executive Jonathan Shokrian said the investment would “enable us to expand our MeUndies brand community into new markets and new channels.”
It’s not clear yet which new markets the company might be targeting or where it might open new stores. In 2018, MeUndies opened a flagship store at the Westfield Century City mall. So far, however, it hasn’t opened any physical locations outside of Los Angeles.
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