Monday, 25 Nov 2024

Makeup brand Glossier raises $100 million after sales double

(Reuters) – Glossier Inc, the online cosmetics company with a cult following among millennials, has raised $100 million in funding led by Sequoia Capital, as it readies new products after sales doubled last year.

The funding gives the company a valuation of $1.2 billion, the Wall Street Journal reported on Tuesday, placing it among a clutch of billion-dollar makeup brands that have grown rapidly thanks to the social-media celebrity of their founders.

Kylie Cosmetics, Pat McGrath Labs, Jessica Alba’s Honest Beauty and Huda Beauty are other brands with a valuation nearing or above $1 billion, according to media reports.

Known for their “millennial pink” packaging, Glossier products have been worn by Beyonce, Chrissy Teigen, Miranda Kerr and other celebrities. With nearly 2 million Instagram followers, the brand has grabbed eyeballs with ads that feature everyday people, products that cover a variety of skin tones and an emphasis on a natural, “no-makeup” appearance.

The company, launched by U.S. lifestyle blogger Emily Weiss in 2014 as an online business, has grown to over 200 employees and last year surpassed $100 million in revenue from its direct-to-consumer line, it said in a statement.

Earlier this month, Glossier launched “Play,” a brand that sells more colorful, flashier makeup, as part of efforts to grow its customer base.

Glossier also announced it had hired Vanessa Wittman, a former finance executive at Dropbox and Yahoo-owner Oath Inc, as its new chief financial officer.

Its latest funding round, a series D, included some existing investors as well as new investors Tiger Global Management and Spark Capital.

“Beauty consumers increasingly want to interact with brands and purchase products online,” said Megan Quinn, general partner at Spark Capital. “The industry’s conglomerates are ill-equipped to retrofit their businesses to this new reality.”

Glossier was valued at $390 million after a $52 million funding round one year ago, according to PitchBook Data.

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