China’s Perfect Diary brand has closed a new round of fundraising that brings the brand’s valuation to $4 billion.

WHO: Founded in 2017 by entrepreneur Huang Jinfeng’s Yatsen e-commerce firm, Perfect Diary is often referred to as “the Glossier of China.” The brand built its initial audience via China’s social commerce platform Xiao Hong Shu, also known as Red, and WeChat, targeting millennials and Gen Z with accessible price points. The brand opened its first physical retail store in Shenzhen in January 2019 followed by 40 stores in 20 Chinese cities by year-end, with plans of opening 600 stores mostly located in second- and third-tier cities by 2022.

DETAILS:

• Perfect Diary has completed a new fundraising round for an undisclosed amount of capital that values the company at $4 billion.
• Investors include Warburg Pincus, Carlyle Group, and Loyal Valley Capital, Chinese media outlet IPOzaozhidao reported on Monday, citing people close to the deal.
• The brand is said to be preparing for an IPO before the end of the year with Morgan Stanley and Goldman Sachs named as underwriters.
• In April 2020 Perfect Diary received a $100 million capital infusion valuing the business at $2 billion, led by New York-based Tiger Global Management, which also invested in Glossier last year, followed by Hopu Investment and Boyu Capital.
• A September of 2019 funding round pushed the brand to unicorn status and was led by Gao Lian Capital and Sequoia China with participation by Chinese Culture.