Téthys joins General Atlantic to Back DTC Brand Sézane - Madaar News

Téthys joins General Atlantic to Back DTC Brand Sézane

Téthys, the family office of the Bettencourt-Meyers family, best known as L’Oreal’s largest shareholders, is taking a minority stake in French FMCG company Sézane, joining previous investor General Atlantic in the latest round of the clothing brand. financing. (In 2018, General Atlantic acquired an undisclosed minority stake.)

A Téthys spokesman declined to share terms of the transaction, but said there would be no change in Sézane’s governance. Founder Morgane Sézalory will remain CEO and creative director of the brand, which has grown exponentially in recent years as consumer appetite for affordable, French-inspired women’s dresses has accelerated. In 2016, the company launched Octobre Editions, a menswear offshoot, which currently makes up about 10 percent of the business and is in expansion mode.

Sales are expected to exceed 250 million euros in 2022, according to sources familiar with the business, with 85% coming from e-commerce. The remaining 15 percent is made up of eight permanent retail outposts, including a directly operated store in Paris’ Le Bon Marché department store. (While the brand first made an impression in the U.S. with a Madewell collaboration, followed by pop-ups with Nordstrom, the main Sézane line is sold entirely direct-to-consumer.)

Although Sézalory said it aims to keep the majority of sales online, the company — which has been growing 20 to 30 percent year-on-year for several years — continues to open permanent stores and pop-ups, with another store in London is slated to open in 2023, and pop-ups in San Francisco and Amsterdam are planned. (The brand is growing fastest in the US and Europe and has yet to expand into China.)

Over the summer, Sézane was one of several fashion businesses said to be seeking additional funding, and market sources say there was no shortage of interested parties. Working with the Bettencourt-Meyers family, who founded their investment firm in 2016, made sense because they have a “long-term approach,” Sézalory said. “Téthys Invest has a family mentality and is committed to supporting entrepreneurs in the long term, respecting people, creativity and entrepreneurs like me.”

While many brands have sought investment or sale in recent months, few have been able to close a deal. Sézane’s impressive growth, combined with its ability to limit sales, made it attractive. Several of the brand’s French competitors have struggled to capture the interest of US consumers, largely due to a lack of understanding of the market. Sézane, on the other hand, has nailed the price, fit and storage experience so far.

The investment is Téthys’ first in the fashion industry.

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