Kendall Jenner's preferred Adanola company gains a £400 million valuation following the sale of her stake
Adanola Secures Major Investment, Aims for Global Expansion
Adanola, the popular athleisure brand known for its fusion of fitness and fashion, has secured a significant investment from Story3 Capital Partners, valuing the company at around £398 million ($530 million). This investment is expected to propel Adanola's global growth strategy, particularly in the US and other key international markets.
Tom Copeland, corporate finance partner at PwC UK, believes Adanola's proposition is highly differentiated, playing at the intersection of fitness and fashion with an elevated everyday range and accessible price point. The brand's success is evident in its impressive growth figures, with units sold surging by 110% and total orders jumping by 98% in the last year, following a 308% rise in the prior 12 months. Adanola's turnover also jumped from £27.8 million to £57.1 million in the financial year.
Samir Shah, a partner at Story3, sees opportunities for Adanola to expand in its home UK market and within key growth markets, including the US. The Los Angeles-based private equity firm, which also has investments in Coco Republic, Mammoth Brands, and HD Buttercup, believes in the convergence of consumer brands, digital media, and technology to succeed in today's disrupted world.
The brand's growth strategy is digitally focused, product-centric, and global. It plans to prioritize digital channels and direct-to-consumer sales, complemented by a curated wholesale network including Selfridges, David Jones, Equinox, Ounass, and Soho House. Adanola also has long-term plans to selectively grow its retail presence through own-brand stores.
Key components of this strategy include leveraging Story3’s expertise in consumer brand building to drive sustainable and profitable growth across important global markets, especially the US and UK. The brand will maintain its product-first, women's active lifestyle identity, refining product design and establishing brand-first partnerships to stay true to its DNA. Story3's capital will accelerate scaling while continuing strong direct-to-consumer operations and a selective wholesale model.
Growth leadership under newly appointed CEO Niran Chana, former Gymshark chief commercial officer, is tasked with executing this expansion and growth strategy. Chana will leverage celebrity endorsements and brand awareness already established, with a loyal customer base and high-profile fans like Kendall Jenner, to boost international expansion.
In November, Adanola's pre-tax profit had surged from £8.3 million to £18.9 million in the year to 31 March, 2024. With this investment and strategic plan in place, Adanola is poised to become a global leader in women’s activewear.
[1] Adanola's global growth strategy following the investment from Story3 Capital Partners. [2] Appointment of Niran Chana as CEO to execute expansion and growth strategy. [3] Emphasis on digital channels and direct-to-consumer sales. [4] Leveraging celebrity endorsements and brand awareness for international expansion. [5] Balancing wholesale and selective physical retail expansion.
- The investment from Story3 Capital Partners will facilitate Adanola's global expansion, particularly targeting the US and other significant markets.
- Niran Chana, the new CEO of Adanola, will lead the execution of the growth and expansion strategy.
- Adanola plans to prioritize digital channels and direct-to-consumer sales as part of its strategy, while also selectively growing its retail presence through own-brand stores.
- The brand will utilize celebrity endorsements and existing brand awareness to drive its international expansion.
