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Michelle Phan’s Beauty Subscription Service Ipsy Raises $100 Million In Funding

Ipsy has a new influx of cash to help expand its business. The beauty box subscription service, co-founded in 2011 by YouTube star and beauty industry magnate Michelle Phan, has closed $100 million in a Series B funding round.

Ipsy’s Series B round was led by both TPG Growth and Sherpa Capital. The subscription service had previously raised roughly $2.8 million in funding from 500 Startups and Crosscut Ventures. With that funding alone, ipsy managed to reach $84 million in revenue in 2014, and hit the $150 million mark in May 2015.

“We see consumer preferences shifting dynamically across industries and ipsy embodies this trend for beauty,” said David Trujillo, a partner at TPG, in a release. “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. We look forward to partnering with ipsy’s founders 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.”

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“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.”

Ipsy recently launched ipsy Open Studios, an online resource hub and physical studio location to help the company’s more than 10,000 members create excellent beauty content. In just under four years, ipsy has signed up 1.5 million beauty box subscribers across the U.S. and Canada.

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Published by
Bree Brouwer

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