Tips Clear News Portal Your Ultimate Guide to Clear Tips on Life, Tech, Health, and More Selena Gomez Joins Billionaire Ranks with Thriving Rare Beauty Empire
Selena Gomez has officially entered the exclusive billionaire’s club, joining the likes of Kim Kardashian, Jay-Z, Oprah, Rihanna, Paul McCartney, Steven Spielberg, and George Lucas, thanks to the explosive success of her makeup line, Rare Beauty. As the sole owner and founder of the company, Selena’s venture has outpaced many celebrity-led brands by retaining full ownership rather than opting for the typical majority-owned partnerships.
Launched in September 2022, Rare Beauty has quickly distinguished itself in the competitive beauty industry with a mission-driven approach. Offering products priced between $5 and $30, the brand aims to make beauty accessible without compromising on quality. Additionally, Rare Beauty is committed to social impact; it donates 1% of all its revenue to the Rare Impact Fund, which supports mental health initiatives and BIPOC-led organizations. Remarkably, in 2022 alone, Rare Beauty raised over $5 million and donated $2 million to various causes.
(Photo by Pascal Le Segretain/Getty Images for SEPHORA)
By 2023, Rare Beauty’s annual revenue soared to $350 million, securing a conservative company valuation of $1 billion based on industry standard revenue multiples—which can range from 3 to 10 times the revenue. However, with the brand’s accelerated growth, valuations could reach as high as $3 billion. Earlier this year, Selena turned down a staggering $2 billion acquisition offer, underscoring her commitment to nurturing the company’s growth and potential.
In a comparative analysis, when Rihanna was declared a billionaire in August 2021, it was partially attributed to her half ownership of Fenty Beauty, valued at $2 billion with annual revenues around $500 million. If we apply a similar valuation model to Rare Beauty’s current performance, the company could be valued at approximately $1.4 billion today.
Outside of Rare Beauty, Selena Gomez’s business acumen extends to other ventures. She co-founded Wondermind, a mental health startup, which secured a $100 million valuation following a $5 million investment round led by Serena Williams’ Serena Ventures. Additionally, Selena’s influence extends into the entertainment industry as a successful actress, producer, and one of the most-followed individuals on Instagram, boasting over 425 million followers.
With her expanding business empire and the booming success of Rare Beauty, Selena Gomez’s net worth has catapulted to $1 billion, marking her induction into the billionaire’s realm and solidifying her status as a multifaceted entrepreneur and celebrity powerhouse. Congratulations, Selena, on achieving this remarkable milestone!
