Direct to consumer online retailer Glossier Inc. swung into the billion dollar club with a newly completed venture capital round announced today.
It received $100 million in Series D funding, led by Sequoia Capital, with participation from new investors Spark Capital and Tiger Global Management, joining incumbent participants Forerunner Ventures, Thrive Capital, Index Ventures and IVP.
According to a report by the Wall Street Journal, the new funding pushes Glossier’s valuation to $1.2 billion, more than enough to place the five year old startup in the ‘unicorn’ camp, a designation for startups reaching more than a billion dollars in valuations.
“We are building an entirely new kind of beauty company: one that owns the distribution channel and makes customers our stakeholders,” said Glossier’s Founder and CEO, Emily Weiss, in a statement. “Thanks to this direct relationship with our customers, we have access to endless inspiration for new products, experiences, and ways of building an enduring business—all while staying true to our core belief that beauty should be a celebration of individuality and personal choice.”
Its investors are pleased with their decision to continue their investment in the 200 person strong company.
“Glossier has built an exceptional brand and relationship with its customers, and its business fundamentals are equally impressive,” said Sequoia Partner Michael Abramson, “This is one of the most efficient direct-to-consumer businesses we’ve encountered, and with this new capital, we believe Glossier is well positioned to define the next era of the beauty industry.”
“Beauty consumers increasingly want to interact with brands and purchase products online: by 2024, online beauty sales are expected to reach $120 billion globally,” adds Spark Capital’s General Partner. Megan Quinn. “The industry’s conglomerates are ill-equipped to retrofit their businesses to this new reality. With its digital-first DNA and enthusiasm for meeting consumers where they are, we believe Glossier is the defining company of this new channel.”
Glossier also announced a few new additions to its staff: Vanessa Wittman, a tech industry veteran, will become the company’s new CFO. She previously held the same position at Oath, Dropbox, Marsh & McLennan, and Motorola Mobility. Also joining the Glossier staff are Edith Chen, as VP of Supply Chain Operations, and Nick DeAngelo, who becomes Vice President of Operations.
Glossier has done impressively since it launched in 2014. It’s annual revenue more than doubled last year and topped $100 million as a fully direct-to-consumer business, while introducing more than a million new customers to its portfolio of beauty and skincare essentials, including its latest brand, Glossier Play.
Photo credit: Bruna