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Online Retailer Everlane Wants to Raise New Money at a Valuation North of $250 Million

The startup recorded $51 million in sales last year and projects double that this year.

Everlane.com

Everlane, the online retail startup that puts transparency at the center of its pitch to millennial shoppers, is in talks to secure a new investment and is seeking a valuation north of $250 million in the process, according to multiple sources. The four-year-old company has raised $18 million in total to date, these people said, at lower valuations.

An Everlane spokesman declined to comment.

The San Francisco-based company sells contemporary apparel in minimalist colors and designs — think sweaters, hoodies, button-down shirts and weekend bags in whites, blacks, grays and blues — at what it says is a fraction of the cost other retailers do. Run by 30-year-old Michael Preysman, the company’s website discloses how much each article of clothing costs Everlane to make and what the factories that manufacture the goods look like.

This approach, coupled with an aesthetic that appeals to young urban professionals, has helped the startup build a strong brand among the hipster set in relatively short order since its 2011 launch. In 2015, Everlane recorded around $50 million in revenue, sources say. It projects to double that total this year.

While Everlane has offered men’s clothing from the start, womenswear now accounts for around three quarters of total sales, according to these people. Along the way, Everlane has eschewed many of the sales tactics popular among e-commerce startups over the last few years, such as flash sales, monthly subscriptions, and personalized boxes.

The startup has also so far refrained from opening a permanent physical store or showroom — a move that more and more digital-first product brands and retailers are making. But the company does offer a limited selection of its clothing for one-hour delivery in New York City and San Francisco, as more young city dwellers expect same-day delivery options.

The company’s existing investors include venture capital firms Lerer Hippeau Ventures, Maveron and 14W as well as PopSugar CEO Brian Sugar and Khosla Ventures partner Keith Rabois.

This article originally appeared on Recode.net.