Ipsy, a monthly beauty subscription service cofounded by beauty vlogger Michelle Phan, today announces that it has raised more than $100 million in funding. The Series B round was led by TPG Growth and Sherpa Capital.
The four-year-old, Bay Area-based company had previously raised less than $3 million. It reports revenue at more than $150 million, and has been profitable for more than three years. The company has tripled in size in the last year, and now has more than 100 employees in San Mateo, Santa Monica and New York.
“This is a big moment for us,” said president Jennifer Goldfarb. “Our investors are really thinking about the future.”
With this, the first major institutional money the company has received, Goldfarb said the company is thinking even bigger, and plans to grow across all areas of the business, from bolstering the team to content creation.
Ipsy sends out five curated beauty products, in the form of a $10 Glam Bag, each month to more than 1.5 million subscribers in the U.S. and Canada. Glam Bags are tailored through personal quizzes and customer reviews and feedback, and the products (from both established brands and smaller names) provide the products to Ipsy.
In keeping with cofounder Phan’s ethos of inspiring individualized beauty through YouTube tutorials, Ipsy shares video tutorials through its network of 10,000 beauty content creators, through Ipsy’s Open Studios platform, which launched in May. The Santa Monica-based Open Studios supports beauty creators with studio space, production and editing equipment, and one-on-one mentoring from Phan. Goldfarb said that investment in and expansion of the Open Studios will be a key area that will benefit from this funding.
Fostering and providing content, in the form of video tutorials or Instagram posts, has been a key component for Ipsy. “We see consumer preferences shifting dynamically across industries and Ipsy embodies this trend for beauty,” said TPG partner David Trujillo in a statement. “Ipsy has created a platform through which brands can more easily access customers, creators can connect with and expand their audiences and consumers can discover new products and share these experiences via social media.”
Sherpa Capital has invested in tech-enabled companies including BloomThat, Munchery and Shyp, and TPG has invested in the likes of Airbnb and Uber.
“With their extensive relationships in the media world and deep understanding of how technology is driving new business models,” said founder and chief executive officer Marcelo Camberos, “these partners will be invaluable to us as we continue to scale and innovate to delight our community.”
According to a 2014 story in WWD, the beauty box subscription market amounts to $20 million to $25 million a month. Competitors include Birchbox and Sephora, which launched a beauty box subscription service in August.
“Ipsy’s goal has always been to create a community that inspires women around the world to express their own unique beauty,” Phan said. “This investment is key to our continued commitment to the next generation of storytellers and creators everywhere.”