Yahoo Finance Beauty influencer Huda Kattan says company will 'probably go the IPO route'
This year has brought disappointing results for high-profile initial public offerings — and a last-minute decision to postpone one in the case of WeWork. But the turmoil hasn’t dissuaded top beauty influencer Huda Kattan and her sister and business partner Mona Kattan.
In a newly released interview with Huda and Mona Kattan, Mona Kattan says their company Huda Beauty will likely take the IPO plunge.
“Long-term, we'll probably go the IPO route,” says Mona Kattan, who launched Huda Beauty in 2013 with Huda Kattan and another sister, Alya Kattan. (Alya Kattan did not appear in the interview.)
The company sells beauty products and accessories, drawing on Huda Kattan’s 39.6 million Instagram (FB) followers.
Plans for an IPO may be a long time off, however.
“I don't think we're looking to raise any more capital anytime soon,” Mona Kattan tells Yahoo Finance Editor-in-Chief Andy Serwer.
Huda Kattan’s massive Instagram following has helped her build a net worth of $610 million, according to Forbes. Huda Beauty generates revenue through the direct sale of products on its website as well as partnerships with brick-and-mortar retailers like Sephora and JC Penney (JCP). In addition, the Kattan sisters are set to launch Huda Beauty Investments, which will mentor and fund entrepreneurs in the space.
Huda Beauty beauty currently has a single institutional investor, global investment firm TSG Consumer Partners, Mona Kattan said.
“They're just phenomenal partners, honestly,” she says. “They've been so strategic. And really, they're long-term greedy as well. Like, they're not about one year or two years. They're thinking about the vision with us.”
Huda and Mona Kattan made the comments during a conversation that aired in an episode of Yahoo Finance’s “Influencers with Andy Serwer,” a weekly interview series with leaders in business, politics, and entertainment.
Huda Kattan says her personal tastes drive the business, which ultimately relies on setting trends.
“I feel like I'm craving this product, and you know, it will kind of start from there,” she says. “Sometimes that product won't necessarily make that much money. But I know it's going to create a movement. People will grab on to the trend. It's a very long-term focus.”
“Luckily, I've been right enough times where we've taken chances that the team trusts me now,” she adds.
While some top Instagram influencers make hundreds of thousands of dollars for sponsored posts, Huda Kattan said she rarely uses them these days.
"We're not doing promoted posts too much right now,” she says, in response to a question from Serwer about how her business operates.
“Our shop Instagram account does, but other than that, we don't really do too many promoted posts anywhere else,” Huda Kattan adds.
The company sources products from across the globe, primarily in Europe, Mona Kattan says.
“We do not negotiate on quality,” she says. “It's quality and customers first.”
Max Zahn is a reporter for Yahoo Finance. Find him on twitter @MaxZahn_.
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