Despite growing market challenges in the apparel industry, U.S.-based activewear brand Vuori has secured a substantial $825 million investment.
On November 8, California-based premium athleisure brand Vuori Inc announced that global investors General Atlantic and Stripes have led an investment round totaling $825 million, which has elevated the company’s valuation to $5.5 billion. This investment is structured as a secondary tender offer and includes participation from a consortium of additional investors. In 2021, SoftBank’s venture capital fund invested $400 million in Vuori, which at that time valued the company at $4 billion. The demand for activewear has remained robust since the pandemic, as consumers confined to their homes have increasingly purchased items ranging from yoga pants to athletic footwear. Vuori, known for its $100 leggings and $64 sports bras, has rapidly gained traction among young consumers in the United States, competing with brands such as Alo Yoga and market leader Lululemon Athletica. Established in 2015, Vuori aims to surpass 100 retail locations by 2026, with a strategic focus on expanding into key markets across Europe and Asia. According to Vuori’s statement, the U.S. athleisure market is projected to grow at a compound annual growth rate of 7% through 2028.
In light of the increasing challenges faced by the apparel industry, the US-based activewear brand Vuori has secured a substantial investment totaling US $ 825 million.
This recent funding elevates the company’s valuation to an impressive US $ 5.5 billion. The investment round was led by General Atlantic and Stripes, alongside a number of other investors.
The structure of this investment is a secondary tender offer, indicating that it primarily focuses on acquiring shares from existing shareholders rather than creating new stock. Consequently, the principal investors will assume the role of strategic partners in Vuori’s future development.
Joe Kudla, the CEO and founder, emphasized that the investors contribute significant industry expertise, which will aid in “accelerating the company’s expansion while ensuring sustainable global scaling.”
In his statement, Kudla conveyed enthusiasm for advancing Vuori’s mission to produce high-quality products that enhance consumer engagement.
This latest funding round builds upon the previous US $ 400 million investment received in 2021, which had valued Vuori at US $ 4 billion.
The new investment underscores the company’s robust momentum in transforming the athleisure market, projected to grow at a compound annual growth rate (CAGR) of approximately 7 percent in the US through 2028.
