(Reuters) – Glossier Inc, the online cosmetics company with a cult following among millennials, was valued at over $1 billion in a latest funding round led by Sequoia Capital, joining a clutch of billion-dollar makeup brands that are powered by the founders’ social-media popularity.
Undated handout image of Glossier products. REUTERS/Glossier/Handout
The series D funding round, which raised $100 million, included some existing and new investors such as Tiger Global Management and Spark Capital, Glossier said.
Glossier’s products have been worn by Beyonce, Chrissy Teigen, Miranda Kerr and other celebrities, and are known for their “millennial pink” packaging.
The company, launched by U.S. lifestyle blogger Emily Weiss in 2014, has grown to over 200 employees and last year doubled its online sales to $100 million.
Glossier was valued at $390 million after a $52 million funding round one year ago, according to PitchBook Data.
With nearly 2 million Instagram followers, the brand has grabbed eyeballs with ads that feature everyday people, products that cater to a variety of skin tones and emphasize a natural, “no-makeup” look.
The company earlier this month launched “Play,” a brand that sells more colorful, flashier makeup, as part of efforts to expand its customer base.
Kylie Cosmetics, Pat McGrath Labs, Jessica Alba’s Honest Beauty and Huda Beauty are some other brands with a valuation nearing or above $1 billion, according to media reports.
Glossier on Tuesday also said it had hired Vanessa Wittman, a former finance executive at Dropbox and Yahoo-owner Oath Inc, as its new chief financial officer.
“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.”
Reporting by Aishwarya Venugopal in Bengaluru; Editing by Sai Sachin Ravikumar and Sriraj Kalluvila