SoftBank invests $1.6 billion in e-commerce startup THG’s new ‘influencer platform’

SoftBank is back in the news. Today, U.K-based beauty and lifestyle e-commerce startup THG. announced that SB Management, a division of Japanese tech giant SoftBank, is investing $1.6 billion in the company. As part of the deal, SBM is also taking a $730 million stake in THG itself, which is raising $1 billion in fresh equity to fuel its worldwide expansion efforts.

In an announcement to its shareholders on Monday, THG said the deal will give SB Management 19.9% of THG Ingenuity. The deal, which values THG Ingenuity at $6.3 billion, is roughly what parent firm THG was originally valued at when it floated on the London Stock Exchange in 2020.

“THG Ingenuity is a yet-to-be-formed, THG owned and controlled subsidiary group, comprising the Ingenuity platform IP and operating trade and assets,” the parent company said.

“To effect the SBM investment, THG Ingenuity will be required to be a separate legal entity capable of receiving the investment and this process has already commenced.”

The deal gives SoftBank a stake of just under 10% in the Manchester-based company formerly known as The Hut Group, and an option to invest a further $1.6 billion into THG’s technology arm THG Ingenuity.

THG owns beauty retailer Lookfantastic, makeup brand Illamasqua and beauty box service Glossybox, as well as supplements firm Myprotein. THG said it would use the money to “execute an advanced pipeline of strategic M&A”.

The equity placing was priced at 596 pence per share and was oversubscribed, with THG raising a total of $320 million from other investors. THG shares were up 12.7% at 0828 GMT on Tuesday, having risen as much as 19%.