Investors are pouring big money into emerging brands expected to take market share.

The $240 million financing round was led by hedge fund Lone Pine Capital and joined by investment firm D1 Capital Partners, Skims chief executive officer Jens Grede said in an interview. Existing investors Imaginary Ventures, Alliance Consumer Growth and Thrive Capital also participated. Skims was valued at $1.6 billion in April.

“This latest round will allow us to focus on bringing more innovations and solutions to our customers and become even more of a trusted resource for them,” Kardashian said in an email.

Kardashian and her business partner Grede retained a controlling stake in Skims following the deal. Kardashian, who promotes the brand to her massive online following and helps with design and marketing, remained its largest individual shareholder. The pair aren’t looking to sell the business at this time, nor do they have imminent plans to file for an initial public offering, though that may be considered at some point, Grede said.

Since its debut in 2019, Skims has expanded from its original shapewear offering of bodysuits and boy shorts into loungewear like pajamas and sweatpants. It now sells a wide range of basics that include pullovers, sleep robes and turtlenecks. Shapewear now represents less than 20 percent of sales and underwear accounts for the majority of its business.

Kardashian’s brand boosted sales 90 percent to about $275 million last year and expects to hit $400 million in 2021. The deal brings total funding for the Culver City, California-based company to $402 million. Management will use the fresh capital to bolster the balance sheet and pump money into expansion plans.

“We see an opportunity with Skims to create our own category in retail, just like how we believe Lululemon and Starbucks created their own categories in their respective areas,” said Grede. “That’s really why we’re doing this, to make sure we’re best prepared for the future.”

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