Chinese cosmetics brand Perfect Diary has completed a new round of financing worth $140 million, and it plans to have an initial public offering in the US by the end of this year, according to Chinese tech media outlet Quantianhou.
US-based private equity firm Warburg Pincus LLC. and US-based investment firm The Carlyle Group invested approximately $70 million, respectively. The new round of financing has pushed the Guangzhou-based cosmetics brand to $4 billion in value.
In addition to the new capital entry, Perfect Diary executive team also ushered in fresh blood. E-commerce shopping site Vipshop Holdings Ltd’s chief financial officer Yang Donghao will join Perfect Diary as the CFO and trade in the IPO.
Perfect Diary said they don’t have any response to the recent news.
In August, Vipshop said that Yang will step down from the position in November 2020 for “personal reasons.”
The online brand discount retailer announced the news in its unaudited financial report for the second quarter ending June 30. What’s more, Yang will be appointed as a new non-executive director, effective simultaneously with the change of his position.
Yang has served as Vipshop’s CFO since 2011 and “made significant contributions to the company’s growth and transformation from a privately held company into a publicly listed company with effective internal control and compliance systems in the past nine years,” the report said.
Since its establishment in 2017, Perfect Diary has grown from an unknown small company to a new representative of Chinese domestic beauty brands.
On Double Eleven Shopping festival in 2019, Perfect Diary was the top sales champion of Alibaba’s Tmall cosmetics brand, becoming the first domestic brand to reach the top.
Perfect Diary revealed that its user groups are mainly college students and newcomers in the workplace. Therefore, in terms of product design and pricing, it insists on setting low prices, while marketing starts with the platforms and KOLs that young people like.
In addition to online results, Perfect Diary also opened offline stores. As of June 24 this year, it has completed its 100th store opening plan, and the new retail footprint has been expanded to 47 cities in 22 provinces, municipalities and autonomous regions across the country.