Ipsy, online makeup beauty subscription has raised $100 million in Series B round of funding led by TPG Growth and Sherpa Capital. Though company has not disclosed the valuation of the company, reports suggests with this funding round the valuation would have raised to $800 million.
Founded in 2011 and co-founded by YouTube star Michelle Phan, Ipsy is a beauty box subscription service called ‘Glam Bag’ that offers subscribers with 4-5 samples each month while they are members. The samples the members receive every month is worth more than what they pay for subscription. For instance the samples sent in August are claimed to be worth $53. Till date, the company has more than 1.5 million subscriptions for its single lone product.
“Ipsy’s goal has always been to create a community that inspires women around the world to express their own unique beauty,” said Phan. “This investment is key to our continued commitment to the next generation of storytellers and creators everywhere – it’s going to be a beautiful future.” With the new funds, the company plans to expand business and continue investment in the beauty content creator community.
“We see consumer preference shifting dynamically across industries and Ipsy embodies this trend for beauty,” said David Trujillo, a partner at TPG. “Ipsy has created a platform through which brands can more easily access customers, creators can connect with an expand their audiences, and consumers can discover new products and share these experiences via social media. We look forward to partnering with Ipsy’s founder to continue growing their innovative company, most immediately by leveraging our experience with other high growth, disruptive businesses, as well as connecting Ipsy into our global network of value add relationships.”
“TPG and Sherpa Capital have a proven track record of helping build innovative consumer brands that are disrupting large, traditional industries,” said Marcelo Camberos founder and CEO of ipsy. “With their extensive relationships in the media world, and deep understanding of how technology is driving new business models, these partners will be invaluable to us as we continue to scale and innovate to delight our community.”
Last June, Ipsy launched Ipsy Open Studios in California which is a facility offering its network of more tahn 10,000 beauty content creators free access to soundstages and production and post-production equipment also a range of mobile apps to support the process. Apart from Ipsy, Phan partnered with Endemol Shine Group to introduce Icon, a global lifestyle network that debuted in the U.S and U.K with content covering topics such as beauty, fashion, food, DIY, human interest, travel and health.