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Quince, the affordable luxury brand that’s gone viral on Instagram and TikTok, is raising about $200 million in a new funding round that values the company at more than $4.5 billion, according to people familiar with the deal.
Iconiq, an investment firm that manages the fortunes of Silicon Valley billionaires, is leading the funding round, said the people, who asked not to be identified discussing private information. The new valuation will more than double the company’s previous value — signalling strong investor interest in a retailer that’s become known for low-priced basics like sweaters and dresses.
Representatives for Quince and Iconiq didn’t respond to requests for comment.
Quince sells a range of direct-to-consumer products, including men’s and women’s clothing, accessories and home goods — with the promise of charging less for high-quality essentials. The startup ships its products directly from factories, removing middlemen and reducing costs, a strategy similar to Chinese e-commerce giants Temu and Shein.
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That model has earned it a devoted fan base, drawn by the $50 cashmere sweaters and even discounted caviar.
The financing comes at a time when most direct-to-consumer businesses have struggled to raise capital. Rising social media customer acquisition costs combined with low-performing sales have spooked private investors. But Quince investors were impressed by the company’s fast-growing revenue, one of the people said.
Earlier this year, Quince raised $120 million in a Series C funding round led by Notable Capital and Wellington Management.
Iconiq manages the wealth of clients including Mark Zuckerberg and Jack Dorsey. Founded in 2011, the firm raised $5.75 billion last year for its latest venture fund.
By Kate Clark, Katie Roof
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