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Rihanna‘s lingerie brand Savage X Fenty has done so well in its first year that investors — including JAY-Z — have decided to sink an additional $50 million into the brand, reports The Wall Street Journal.
Those familiar with the situation say that Jay has put money into Rihanna’s company via his venture capital firm, Marcy Venture Partners LLC. Rihanna and her partner in Savage X Fenty, Techstyle Fashion Group, have also kicked in millions of their own money.
The Wall Street Journal notes that since launching its debut collection in May of 2018, Savage X Fenty has been stealing market share from Victoria’s Secret thanks to offering its items in a wide range of colors and sizes.
While the brand has a fraction of the sales of Victoria’s Secret — about $150 million versus just over $7 billion — its sales are increasing, while Victoria’s Secret’s sales are declining.
Nicole Quinn of Lightspeed Venture Partners, who’s invested in celebrity-led consumer brands, tells The Wall Street Journal that putting money in celebrity-backed brands make sense for investors because “it’s much easier to move a fan to being a user than to acquire a brand new user.”
Earlier this year, Forbes estimated Rihanna to be worth $600 million, making her the world’s richest female musician. In addition to Savage X Fenty, she also owns Fenty Beauty, and her new luxury FENTY fashion line.
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