YogaClub gains $2 million investment
today Sep 30, 2019
Size-inclusive women’s yoga subscription box company YogaClub has inked a deal for a $2 million investment.
According to a press statement, the credit facility came from Craft Capital Management, a Garden City, New York-based brokerage firm. Craft Capital Management, LLC, a full-service Investment Bank, closed the loan this month.
“YogaClub has a terrific online presence, doing eight figures in sales,” said Barry Kiront, chief executive officer of Craft Capital Management. “What they needed was some working capital to continue their growth pattern. We were impressed by the company, their vision, and their management team.”
Offering its users a monthly or bi-monthly subscription, the El Segundo, California-based YogaClub offers a box with activewear items from brands like Manduka, Free People, Columbia, Skechers and Niyama Sol, among others. The company allows customers to choose from three different packages that provide either one pair of leggings, one two-piece outfit or one three-piece outfit per box. On its website, the company said that each three-piece box contains on average $160 of retail value yoga and workout apparel for $79.
Though each brand’s size range varies, YogaClub’s variety of activewear labels provide a combined size range from XS to XXXL.
“We’re making activewear affordable for all women by selling a coordinated 3-piece outfit for less than a single pair of yoga pants,” said YogaClub Chief Executive Officer Scott Yamano. “Demand has enabled us to hit our first ceiling in record time. With this investment loan, we can continue and accelerate our growth.”
The investment comes as both size-inclusive apparel and activewear continue to top the list of increasingly growing apparel markets.
According to a February report from ResearchAndMarkets.com, the women's activewear market was valued at $124.65 billion in 2017 and is expected to be growing at a compounded annual growth rate (CAGR) of 8.2% during the forecast period from 2018 to 2026.
In addition, a Digiday report from March of this year reported that the plus-size market is expected to grow to $24 billion in the U.S. by 2020, with an annual growth rate about twice that of the total clothing market.
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