DUBAI, Feb 20 (PRWire) – Dubai-based cosmetics powerhouse Huda Beauty announced on Monday the sale of its fragrance brand KAYALI to co-founder Mona Kattan and global growth equity firm General Atlantic, marking a significant shift in the beauty industry landscape.
The deal, subject to regulatory approval, will see KAYALI transition into an independent entity, with Mona Kattan retaining her position as CEO. Financial terms of the transaction were not disclosed.
STRATEGIC MOVE FOR BOTH BRANDS
This strategic move allows both Huda Beauty and KAYALI to focus on their respective growth trajectories. Huda Beauty, founded by beauty influencer turned entrepreneur Huda Kattan in 2013, will use the proceeds from the sale to fully redeem the ownership interest held by TSG Consumer Partners since 2017, returning the company to complete founder control.
“This decision reflects our commitment to growth on our own terms,” said Huda Kattan, founder and CEO of Huda Beauty. “We’re excited to continue evolving and inspiring within the beauty industry as an independent entity.”
KAYALI’S RAPID ASCENT
Launched in 2018 under the Huda Beauty umbrella, KAYALI has quickly established itself as a disruptive force in the fragrance industry. Known for its unique approach to modern perfumery and Middle Eastern-inspired scents, the brand has gained a strong following among fragrance enthusiasts and newcomers alike.
Mona Kattan, who has been the face and driving force behind KAYALI’s growth, expressed enthusiasm about the brand’s future. “From day one, our mission has been to create a fragrance brand that inspires confidence, creativity, and self-expression,” she stated. “This partnership with General Atlantic will unlock new opportunities and expand our global presence.”
FRAGRANCE MARKET GROWTH
The move comes at a time when the global fragrance market is experiencing robust growth. According to market research firm Euromonitor International, the global fragrance market is expected to reach $68.5 billion by 2026, up from $52.7 billion in 2021.
KAYALI is well-positioned to capitalize on this trend, particularly in the niche and luxury segments where consumers are increasingly seeking unique and personalized scent experiences.
GENERAL ATLANTIC’S STRATEGIC INVESTMENT
General Atlantic’s investment in KAYALI underscores the private equity firm’s confidence in the brand’s potential. Melis Kahya Akar, Managing Director and Head of Consumer for EMEA at General Atlantic, commented on the partnership: “Fragrance is one of the fastest-growing segments in the beauty industry, and KAYALI has redefined the sector through its imagination, authenticity, and emotional connection to consumers around the world.”
The firm’s expertise in scaling global brands is expected to play a crucial role in KAYALI’s next phase of growth, particularly in expanding its international footprint and accelerating product innovation.
IMPACT ON THE BEAUTY INDUSTRY
This transaction highlights the evolving dynamics of the beauty industry, where indie brands are increasingly gaining market share and attracting significant investment. It also underscores the growing importance of the Middle East in the global beauty landscape, with Dubai emerging as a hub for beauty innovation and entrepreneurship.
HUDA BEAUTY’S CONTINUED INFLUENCE
While divesting KAYALI, Huda Beauty remains a formidable force in the cosmetics world. With over 54 million Instagram followers, the brand’s social media presence far outpaces many of its competitors, providing a powerful platform for product launches and consumer engagement.
Huda Kattan’s decision to buy out TSG Consumer Partners and return Huda Beauty to full founder ownership is a rare move in the industry, potentially setting a new precedent for successful beauty startups.
As both Huda Beauty and KAYALI chart their independent courses, industry observers will be watching closely. The success of these brands could provide valuable insights into the future of founder-led beauty companies and the potential for niche fragrance brands to scale globally.
Goldman Sachs International acted as financial advisor to Huda Beauty, with Gibson Dunn serving as legal counsel. Skadden, Arps, Slate, Meagher & Flom provided legal advice to Mona Kattan, while Raymond James served as financial advisor to General Atlantic, with Latham & Watkins as legal advisor.
The completion of the transaction remains subject to customary closing conditions and regulatory approvals.
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