Ipsy, a makeup delivery startup co-founded by YouTube star and beauty guru Michelle Phan, just raised $US100 million, the company announced Monday.
Phan, who films makeup and hair tutorials and has a huge following on YouTube, cofounded Ipsy in 2011 with Marcelo Camberos, who was formerly an executive at Funny or Die, and Jennifer Goldfarb, a Goldman Sachs analyst-turned-executive at makeup company Bare Escentuals.
Previously called “MyGlam,” Ipsy is a subscription makeup delivery service that sends “Glam Bags” stuffed full of makeup and other beauty products — from popular brands like Urban Decay and Smashbox — to its customers for $US10 a month.
Prior to its new found of funding, Ipsy had only raised about $US3 million in venture capital; now investors are going all-in on the company, which “grew aggressively off the back of YouTube influencers,” one investor told Fortune. Sources tell Fortune that the deal values the company around $US800 million.
Ipsy competes with Birchbox, a VC-backed makeup delivery service with $US72 million in funding from investors including Accel Partners, Slow Ventures, First Round Capital, and Lerer Hippeau Ventures. Both Ipsy and Birchbox claim to have more than a million customers each. Ipsy tells Variety that the company is profitable, and that it has made more than $US150 million in revenue.
The subscription makeup delivery space is growing increasingly crowded. Sephora, a brick-and-mortar makeup stalwart, recently announced plans to launch its own subscription makeup delivery service, too.
Investors in Ipsy’s new $US100 million Series B round include TPG Growth and Sherpa Capital.
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