General Atlantic has agreed to buy a stake in the fast-growing fragrance division of cosmetics company Huda Beauty, the latest example of a Dubai-based business attracting interest from international investors. Kayali, as the fragrance unit is called, will operate as an independent company after a deal with a U.S. private equity firm, according to a statement on Monday. Further financial details were not disclosed, reported by Bloomberg.
Huda Beauty — launched in 2013 by blogger Huda Kattan and her sisters Mona and Alia — was once valued at more than $1 billion and sells more than a hundred products online, from false eyelashes to lip gloss. In 2017, TSG Consumer Partners acquired a minority stake in the firm, which Huda Beauty’s founders now plan to buy out.
Kayali perfume
Kayali launched more than six years ago and offers about two dozen fragrances. Her perfumes, which cost about $140 for a 100-milliliter bottle, are sold by major retailers including Sephora USA Inc., Walgreens Boots Alliance Inc. and ASOS Plc. Founder Mona Kattan will remain as chief executive officer after the investment by General Atlantic.
The deal marks the latest case of a company from Dubai, the Gulf region’s main commercial hub, attracting foreign interest. In August, the owner of TJ Maxx bought a stake in retailer Brands for Less, while KKR & Co. said last month it plans to buy one of the Middle East’s largest data center firms.
Huda Beauty offices in Riyadh and Abu Dhabi
Huda Beauty has amassed more than 54.7 million followers on Instagram, making it one of the beauty industry’s most recognizable brands on social media. Competitors Kylie Cosmetics and Gomez’s Rare Beauty have 24.7 million and 8 million followers, respectively. In recent years, General Atlantic has made several investments in popular consumer brands and retailers.
In 2023, the company acquired a majority stake in Joe & the Juice, a chain of street food stores that sells smoothies and sandwiches to young professionals and hipsters. The firm recently opened offices in Riyadh and Abu Dhabi in the region, following in the footsteps of several of its peers seeking closer ties to the region’s sovereign wealth funds.