Cardi B and Gigi Hadid wear it, now luxury empire LVMH has bought a stake – what we know about LA streetwear brand Madhappy, beloved by millennials and Gen Z
The world's largest luxury empire has invested in an up-and-coming LA streetwear brand that's targeted at Gen Z and millennials shoppers.
According to Business of Fashion, LVMH Luxury Ventures, the investment arm of the French conglomerate, led a US$1.8 million round of funding into Madhappy; Tommy Hilfiger and the founders of Sweetgreen also invested in this round.
LVMH Luxury Ventures was set up in 2017 to invest in emerging brands with “strong growth potential”. Since then, it has invested in Gabriela Hearst and French apothecary brand L'Officine Universelle Buly.
We felt that there was a lot of negativity in the world and we wanted to be the opposite of that. It all started from the paradox of the name Madhappy and grew into a movement focused on spreading positivity
Madhappy was set up by four high school friends, two of whom are brothers, in April 2017. The group was in their early twenties at the time.
They set out to create a brand with a positive message where its customers could feel part of a community.
“We felt that there was a lot of negativity both in the world and in the space at the time of our launch and we wanted to be the opposite of that,” co-founder Peiman Raf said in a recent interview with Forbes.
“We are about creating incredible products and experiences that uplift all people who interact with the brand. It all started from the paradox of the name Madhappy and grew into a movement focused on spreading positivity.”
The assortment kicked off with a limited selection of hoodies and T-shirts that were sold at pop-up stores in Los Angeles.
Madhappy has stood by pop-up culture since then, most recently opening temporary stores in New York, Miami and Aspen.
In the past few years, the assortment of clothing has also grown. Today, you'll find a mix of men's and women's loungewear including sweatpants, caps, and cycling shorts that are targeted at its trendy young customers.
Prices range from US$35 for a cap up to US$185 for a hoodie.
Along the way, Madhappy has gathered a celebrity following. Gigi Hadid, Sofia Richie, and Cardi B are among its famous fans.
In a recent interview, co-founder Peiman Raf commented on the recent round of funding and noted the significance of having a strong team of advisers on board.
“Someone could put in as little as US$10,000 but still make a huge impact with the advice they could give us,” he said in an interview with Fashionista in March.
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This article originally appeared on Business Insider.
Positive-themed LA streetwear brand Madhappy is beloved by millennials and Gen Z and counts Gigi Hadid, Sofia Richie and Cardi B as fans – but will investment from the world’s largest luxury multinational, LVMH, dilute the free-spirited brand?