ipsy, an online makeup subscription delivery service, said today that it had raised $100 million.
Users subscribe to ipsy, paying the company $10 per month, which then sends them a monthly package of makeup called a Glam Bag filled with various samples of products. It isn’t the only subscription service that targets the beauty industry, but it appears to at least have struck a chord and built a large user base of 1.5 million subscribers, giving the company an annual revenue of more than $150 million. ipsy says it has been profitable for more than three years.
The round was led by TPG Growth and Sherpa Capital. A round this large after taking very little or no venture financing isn’t entirely unheard of. GoFundMe, for example, was a previously bootstrapped startup that earlier this year raised a venture financing round that valued the company at $600 million. Basically, it’s an attractive business that’s taken little to no outside capital that’s making money — something that is going to very quickly attract the attention of investors.