Guangzhou-based startup Yatsen has closed a new round of financing, led by Hillhouse Capital and joined by Sequoia Capital China, 36Kr reported on Wednesday.
Although the financial details are not known, 36Kr has learned that Yatsen, which owns a domestic cosmetics brand called Perfect Diary, is now valued at above USD 1 billion, reaching unicorn status.
French cosmetics giant L’Oreal once discussed an acquisition plan with Yatsen back in November last year, which did not yield any results, according to 36Kr.
Yatsen, which was set up in 2016, has marketed its Perfect Diary brand via China’s social commerce platform Xiao Hong Shu, also known as Red, and WeChat, gaining its first followers. The company also has a flagship store on Alibaba’s Tmall, and JD.com.
Sales of Perfect Diary’s products such as lipsticks exceeded RMB 100 million (USD 14 million) on June 18, a promotional day on Tmall, making it the top-selling domestic brand in a market once dominated by foreign brands such as P&G, L’Oreal, and Shiseido.
The company also owns more than 13 bricks-and-mortar stores located in cities such as Guangzhou, Shenzhen and Chengdu.
Yatsen, which has ZhenFund as its angel investor, told 36Kr it plans to open 600 stores in the next three years.
36Kr is KrASIA’s parent company