TPG-backed makeup-subscription service Ipsy is considering a sale or an initial public offering.
The company could fetch about $2 billion in a sale, the people said. A sale or IPO could take place next year, one of the people said.
Ipsy was valued at more than $500 million in 2015 when private equity firm TPG and venture capital shop Sherpa Ventures led a $100 million funding round, a person familiar with the matter said at the time.
Ipsy sells a $10 monthly “glam bag” filled with five cult-favorite beauty products such as Benefit brand mascara or Smashbox makeup primer.
The company, based in San Mateo, California, was founded by social-media celebrity Michelle Phan and CEO Marcelo Camberos, an early employee at the humor website Funny-or-Die.
The company leans on social media influencers, called the Ipsy community, to grow a following and at times plug their products. The most influential of those people, called official creators, have hundreds of thousands of social media followers.
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