Quince Reaches $10 Billion Valuation in New Funding Round

Quince on Wednesday said it raised $500 million in a new funding round that values it at $10.1 billion, more than double the valuation it reportedly nabbed just last year.

Iconiq, a returning investor known for managing the wealth of Silicon Valley elites like Mark Zuckerberg, led the round. Others participating included Baillie Gifford, Basis Set Ventures, Marcy Venture Partners (the venture capital firm co-founded by Jay-Z), DST Global, Notable Capital Wellington Management and WndrCo.

“It’s clearly an exciting number,” Matt Lippert, Quince’s chief commercial officer, said of the valuation, “but I think it’s more of an indicator that the system that we’re building is actually working for the consumer — and working for the consumer at scale.”

The company, which sells everything from cashmere sweaters to bedding and caviar, has become known online for producing lower-cost versions of popular items from other brands with promises of comparable quality. It goes so far as to advertise products by positioning them as direct alternatives to competitor’s items — an approach that hasn’t always sat well with rivals, earning Quince court battles with Williams Sonoma and Ugg-owner Deckers Brands.

When customers make a purchase, Quince ships items to them straight from its factory partners, helping to minimise costs. (Lippert noted that the business model makes Quince agile and has allowed it to navigate the ongoing supply chain disruptions hitting retailers.)

Shoppers appear to be responding. Quince said it passed $1 billion in top-line revenue last year and continued its streak of triple-digit annual growth. The US-based company also expanded into Canada, its first international market.

Only a handful of fashion startups have secured Quince’s “decacorn” valuation, most notably Shein, which in 2022 reportedly secured a $100 billion valuation, since slashed by more than two-thirds amid the online fast-fashion retailer’s tortuous path to an initial public offering. The wholesale marketplace Faire raised funding at a $12.4 billion valuation in 2021, but late last year initiated an employee share sale at less than half that figure.

The capital from the latest funding round will go towards keeping that momentum up. Lippert said Quince will continue investing in the people and capabilities required to scale further. The company plans to expand its product catalogue, offering more items in categories it already sells and delving into new products. It has more international expansion planned as well.

Quince has simultaneously been working to create a more distinctive brand identity as it strives to be known for more than making cheaper versions of other company’s products. It has struck partnerships with hip-hop artist A$AP Rocky and celebrity stylist Erin Walsh, and last month it hired beauty-industry veteran Dakota Kate Isaacs as its first head of brand strategy and narrative.

Changing perception of a company isn’t easy, however, and it remains to be seen how successful Quince can be in building a brand of its own. In the meantime it continues to appeal to shoppers looking for quality at accessible prices.

“We’re just scratching the surface,” Lipper said. “I think there’s a lot more value that we can deliver to the consumer.”

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