Michelle Phan's Ipsy Raises $100 Million
The e-commerce company, founded in 2011 by YouTube star Phan, has 1.5 million monthly subscribers.
Michelle Phan's Ipsy has raised $100 million in funding to invest in its beauty creator community.
The Santa Monica e-commerce company, which sells $10 monthly subscriptions to Glam Bags featuring the latest beauty products, has raised the money from Bay Area venture capital firms TPG Growth and Sherpa Capital.
In July, Ipsy launched a new program called the Ipsy Open Studios, which gave access to its professional studio space to its network of up-and-coming content creators. Those creators can shoot videos for their own YouTube channels in the space and can also be asked to create content to promote Ipsy's Glam Bags. Phan explained that the new funding will go toward growing that community.
"Ipsy's goal has always been to create a community that inspires women around the world to express their own unique beauty," she said. "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."
Phan, 28, rose to fame creating makeup tutorials for YouTube, where she currently has nearly 8 million subscribers and 1.1 billion total views on her channel. But as here brand has grown, Phan has diversified into other business ventures including Ipsy, which she co-founded in 2011, and the ICON Network, which she launched with Endemol Beyond earlier this year.
Ipsy, which competes with New York startup Birchbox, currently claims 1.5 million monthly Glam Bag subscribers in the U.S. and Canada and more than $150 million in revenue. The company's creator community has grown to 10,000 members.
The TPG and Sherpa financing is the largest round of funding that that that the company has raised to date. Previously it had raised about $3 million. "TPG and Sherpa Capital have a proven track record of helping build innovative consumer brands that are disrupting large, traditional industries," said Ipsy CEO and founder Marcelo Camberos. "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 use as we continue to scale and innovate to delight our community."