Gymshark achieves unicorn status as major investor takes stake
Published on Friday, 14 August 2020
Gymshark has sold a 21% stake in the business in a deal which values the fitness clothing brand at more than £1bn.
Global growth equity firm General Atlantic has come on board as a strategic partner in its international growth plans.
The valuation sees Gymshark join an exclusive list of fewer than 25 British companies to have secured unicorn status since 2001, achieving the feat in just eight years.
Gymshark founder Ben Francis said: “I firmly believe Gymshark has the potential to be to the UK what Nike is to the US and Adidas is to Germany, and today is a significant step to realising that.”
The business was created by Francis when he was a student at university in Birmingham and its growth through social media and influencers has been phenomenal. Last year its sales were more than £250m.
“We are nothing without our community, so we will use this new investment partnership to get even closer to them on a truly global scale.
“I’m incredibly proud of what Gymshark has achieved to date from our roots in Birmingham, but it’s all about looking forward.
The investment deal is the first time Gymshark has raised money from private investors, a marker of its ability to generate cash while having a lean operation.
It sold its branded products only through its own website and pop-up stores, which its fans would queue for hours to get into in cities around the world.
General Atlantic’s head of consumer for EMEA, Melis Kahya Akar, will join the Gymshark board.
She said: “Fitness apparel is a large and resilient market with growth potential. Gymshark has managed to create a substantial social community around its products and services, generating brand awareness and loyalty. We are thrilled to be partnering with Ben and the team to build on Gymshark’s offering globally.”