Glossier Raises $80 Million Series E, Valuing Company at $1.8 Billion | The Business of Beauty, News & Analysis

Glossier Raises $80 Million Series E, Valuing Company at $1.8 Billion | The Business of Beauty, News & Analysis

Glossier’s Seattle pop-up. The brand will open its first new permanent location in the city. Glossier.

Glossier has emerged from the pandemic with its eyes set on retail expansion. In order to get there, the beauty brand has shored up more capital.

A new $80 million investment values the company at $1.8 billion post-money, sources confirmed to The Business of Fashion. The round was led by Kelly Granat at Lone Pine Capital, which has also invested in SweetGreen and Farfetch. Forerunner Ventures, Index Ventures, IVP, Sequoia Capital and Thrive Capital, each of which are existing investors, also participated in the round. The company also secured a debt facility from JP Morgan.

The funding round comes off the heels of two recent announcements in June. First, Alexandra Weiss, who had been with the company since 2015, was promoted to CMO after serving as the senior vice president of marketing. Glossier then announced a return and expansion of its physical retail presence after shuttering locations during the pandemic, which a cash infusion will help fuel.

Glossier had raised $186 million in funding as of March 2019, after closing a $100 Series D that more than tripled its valuation to $1.2 billion. A Series E worth $83 million brings the total amount raised to $269 million.

Glossier declined to comment.

The new round will be used to build out the brand’s retail network, which Emily Weiss, Glossier’s founder and chief executive officer, described as a “city-by-city” approach in a previous interview. Tailoring stores per city is a way to “activate the local community,” she said. It’s worked so far: The brand sees lifts in online sales in the regions surrounding a store or offline activation. For instance, a previous pop-up in Boston was made of “campuses” as an ode to the universities in the area.

Next month, the brand is relaunching its stores, starting with a sprawling magic mushroom themed $4,500-square foot door in Seattle, the first in a series of stores set to open across the US and globally over the next few years. Last year, Glossier permanently shut its New York and Los Angeles flagship stores last summer to re-group on a post-pandemic retail strategy.

Despite the investment in brick-and-mortar, it’s e-commerce that drives the business: Currently, 80 percent of the brand’s revenue comes from its own site.

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