Last week, rumours swirled that beautyâs buzziest brand, Rhode, was exploring a sale. The outfits, aesthetic and lifestyle of its founder, the model Hailey Bieber, perennially make headlines; its products, like its lip-gloss-holding phone cases are social media catnip, and the crowds thronging to get into its pop-up stores are enormous.
One of its biggest investors, however, is decidedly more under the radar.
âItâs not that Iâm shy,â said Davide De Giglio, who has also backed Isamaya Ffrenchâs Isamaya Beauty. âI just run the business, Iâm not a face, so thereâs no need for [people to know] what Iâm doing.â De Giglio declined to comment on the reports of the sale.
Speaking exclusively to The Business of Beauty, De Giglio detailed his investments in the two brands for the first time, as well as in the historic fragrance brand Santa Maria Novella, which dates back to 1533, and Eredi Zucca, a barbershop and grooming brand based in Milan. If a sale of Rhode goes ahead, it would be De Giglioâs second big exit: In 2019, e-commerce juggernaut Farfetch acquired the luxury streetwear holding company New Guards Group that De Giglio co-founded for $675 million.
Despite de Giglioâs preference for privacy, NGG spawned much-talked-about brands like Palm Angels, Off-White and Heron Preston. A five-year non-compete agreement with Farfetch meant fashion investments and activity were off the table, so De Giglio looked to beauty.
He sees uncapped potential in the category, especially given frenzied interest from Gen-Z and Gen Alpha consumers. âI can remember when I was very young, my girl friends were not into beauty. They were not asking their parents to go to Sephora,â he recalls. âNow there are a lot of opportunities. I really want to invest in other brands,â he said, adding that being based in Milan helps logistically, as so many manufacturers are based there.
De Giglio also has the benefit of free reign. His firm D Capital employs around 20 people to help oversee the investments with an unfettered agency. âI donât have to talk to a board of directors or other investors,â he said. All investments are fully funded through his own capital; he owns a âsignificant minorityâ of Isamaya Beauty and Rhode, and a 5 percent stake in Santa Maria Novella. D Capital has also invested in the caviar maker Volzhenka, and it wholly owns Eredi Zucca.
His role at each of his portfolio companies is that of a strategic advisor, he said. At NGG, De Giglio helped create immediacy in luxury fashion, streamlining the supply chain to allow drops of product to happen much faster. That makes him uniquely well-positioned to help budding beauty brands. Cosmetics makers, especially those with a famous face or prone to viral peaks, often run into supply chain issues, and trending products can be out of stock for a long time. While a little scarcity can help a brand, too much will just make shoppers disinterested.
âIf you donât have the right industrial platform, it can kill the brand,â he said.
The Rhode to Success
De Giglioâs first meeting with Hailey Bieber happened during his NGG era â Off-White made the wedding dress she wore to marry Justin Bieber â but a âclose friendâ re-introduced them when she was conceptualising Rhode. âItâs very common that I get investments from friends and family. But when I looked at her deck, I said, âThereâs something else [here],ââ said De Giglio. âThis is not a celebrity brand. This is a girl with a vision who knows what sheâs doing.â
D Capital took a minority stake as a limited partner, alongside its London-based general partner One Luxury Group. The brand has been an explosive success since its launch in 2022, with lines around the block at its pop-ups, where shoppers queue for hours to get limited-edition colourways of its trending lip gloss phone cases or new drops of its Pocket Blush, or stock up on skincare. Itâs reported that sales reached $200 million in 2024; de Giglio said sales could be as high as $300 million or more this year.
His logistical expertise and proximity to Milanâs beauty hubs were especially important in the early days of the brand; the best-selling Peptide Lip Tint balms are made in Italy. At Isamaya Beauty, which launched in 2021, his role was even more hands-on, helping the brand find suppliers and its chief executive officer Federica Nicolao in 2024. Much like Rhode, his connection to Isamaya Beauty came via the world of fashion: Ffrench collaborated with Off-White as a makeup artist. âI realised that she had a vision, and I wanted to make a bet on her. Sheâs super, super creative,â he said. The brand is generating more than $20 million in annual sales, and recently launched into Sephora with an updated range of products.
In 2022, the Pesenti family that owns Santa Maria Novella came calling. De Giglio joined as an investor to help grow sales and advise on marketing; the business, which is owned by the holding firm Italmobiliare, is projecting $100 million in sales this year, and is opening new storefronts to expand its retail footprint. De Giglioâs also focussed on opening more stores for Eredi Zucca, which he acquired in 2023.
âWeâre very focussed on retail. Weâre launching fragrances, we have a skincare line. We make 100 percent of our products ourselves,â he said.
The Next Generation
De Giglio declined to share his preferred check size, but described his strategic support as being akin to parenthood: when children are around one to ten years old, they need a lot of support to grow, and beyond that, they become more self-sufficient. âMy skills are between that one and 10,â he said.
Lately, heâs making a return to fashion. Now that his non-compete with Farfetch has expired, De Giglio took a majority stake in Umit Benan, a Milan-based brand founded by the Turkish designer of the same name in May 2024.
In this new era, De Giglio is enjoying the luxury of time and liberty. âI donât have to leave the space in three, five years. I can keep my investment for 10 or 20 years or even forever. ⦠Iâm free to choose,” he said, adding that his flexibility as a single-party investor gives him greater opportunities.
Still, despite the bold success of NGG, Farfetchâs liquidity struggles weighed on the company. De Giglio and his co-founders left in 2023, and the business filed for bankruptcy protection in November 2024. Holding company Bluestar Alliance now owns Palm Angels and Off-White. Palm Angels founder Francesco Ragazzi is also playing in beauty now â he launched a high-end fragrance line, Réservation, in February.
Speaking about how he advises his portfolio brands now, De Giglio said he tries to help them avoid mistakes he made. âWhen I was younger, I thought that you can do everything yourself. But in reality, you can put too much complication in the business,â he said. Learning how to scale sustainably takes time, as does learning how to take feedback. âIâve learned to listen,â said De Giglio.
Despite the saturation in the beauty category â both of brands and investors â De Giglio sees more white space for creatively founded brands, and believes his logistical experience can help enhance them to the next level.
âWhatâs motivating me is the fact that itâs not a business. To me, itâs fun,â he said.
His 10-year-old daughterâs fascination with beauty demonstrates that the category is still posted for further growth. âIf you see her bathroom, she is so into beauty,â he said, showing a photo of brightly coloured Rhode and Drunk Elephant bottles and jars next to her sink.
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