Dubai-based luxury resale marketplace The Luxury Closet (TLC) has secured an undisclosed investment from Huda Beauty Investments (HBI), the private investment office of the founders of the Huda Beauty makeup and skincare empire. Excluding this latest round of investment, TLC has raised $18 million across three funding rounds.
According to a statement by the company on Tuesday, the partnership between HBI and TLC is aimed to deepen the combined understanding of consumer behaviour in fashion and beauty and to drive brand awareness and increase the adoption of resales.
As per the partnership, HBI will join TLC as one of the principal shareholders with Mona Kattan, co-founder and global president of Huda Beauty joining the board alongside existing shareholders, Wamda, Middle East Venture Partners (MEVP), Knuru Capital and Precinct Partners.
“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.” said Kunal Kapoor, founder and CEO of TLC.
Founded in 2012, TLC operates as a direct-to-consumer (D2C) marketplace that allows users to buy and sell new and pre-owned luxury items. So far, it has 80,000 items worth $120 million listed on its platform and sourced from 5,000 sellers.
As founders of one of the world’s biggest beauty brands, HBI was launched in 2017 to incubate and invest in early-stage businesses. The Kattan sisters apply their unique marketing and distribution platforms to support founders in building their brands and expanding their reach. HBI has already invested in UAE-based cloud kitchen startup Kitopi and TLC marks its second significant investment in the Middle East.
“We are excited to partner with The Luxury Closet. Sustainability is one of our primary focuses and a core tenant for the HBI portfolio. In our continued effort to champion responsible and eco-friendly businesses, we couldn’t be more enthusiastic about our partnership with The Luxury Closet,” said Huda Kattan, chairperson of HB Investments and founder of Huda Beauty.