The team behind one of world’s most iconic beauty brands look to diversify their portfolio with a co-investment in the pre-owned luxury fashion marketplace.
International cosmetics giant and beauty platform Huda Beauty’s little-known investment office, Huda Beauty Investments (HBI), has just invested in Dubai-based luxury resale marketplace The Luxury Closet. The exact size of the investment by the iconic beauty brand was not disclosed but is part of a joint investment round with Middle East Venture Partners for a total sum of $11 million.
The Luxury Closet was founded in 2012, and sells used designer watches, handbags, clothing, shoes, and accessories. Focusing on ‘perfect condition’ items from luxury houses like Louis Vuitton, Chanel, and Prada from resellers across the Middle East, around 60% of their revenue comes from the MENA region, while the remainder comes from markets in Asia and the United States.
In total, The Luxury Closet has amassed $18 million in financing, and has acquired Guitless, a Hong Kong-based competitor in luxury fashion resale space.
The partnership with HBI is a milestone for The Luxury Closet, with HBI helping the company with brand development and harnessing an understanding of consumer behaviour in the fashion industry. Huda Beauty has nearly 50 million followers on Instagram, making them one of the most followed brands in the world.
As a result of the partnership, Mona Kattan, the co-founder and global president of Huda Beauty, will be joining The Luxury Closet’s board. In a press statement Kunal Kapoor, the co-founder and CEO of The Luxury Closet, said: “Given the economic situation, people are increasingly valuing circular businesses as they are an affordable and sustainable way to refresh their wardrobes. This has expedited The Luxury Closet’s growth across market cycles. HBI’s investment in The Luxury Closet is excellent news for our company. The partnership will help us bring the concept to a whole new audience.”
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