Rhode is a brand built on the power of influencer marketing. 

The beauty line owned by Hailey Bieber grew quickly thanks to significant sales traction, a reality that drew interest from bigger companies until its eventual sale. The sale of Rhode in May 2025 shot a signal into the beauty world with the message: “Welcome to the era of celebrity-backed beauty brands.” 

How rhode moved from an influencer’s vision to an industry force 

In 2022, Hailey Bieber set out to establish a line of beauty products that she hoped would appeal to beauty enthusiasts who shared her preference for a minimalistic makeup look. These products were produced and sold under the rhode brand. In no time, success came knocking. 

Three key strategies that may have been responsible for the early success: her personal brand, viral product launches and an effective social media strategy. As a model and partner to music sensation Justin Bieber, Hailey was already in the spotlight, and a brand attached to her name didn’t struggle to gain attention. Secondly, product launches are successful when they get a product in front of numerous new faces. Using buzzy collaborations and mass media, the rhode brand had a viral product launch that translated into sales—the Peptide Lip Treatment product sold out within hours of launch. Thirdly, the rhode brand used social media strategies to target its Gen Z and millennial consumers, creating content that resonated deeply with them. These social media videos got Hailey over 50 million followers.

It wasn’t another celebrity project that would gain hype and die down in months—it was one with intentional and smart branding that stood the test of time.

Details of the rhode sale 

In late May 2025, e.l.f. Beauty announced the purchase of the Rhode brand in a deal worth $1 billion. While the sales amount was shocking to many, rhode had shown strong growth potential with sales reaching up to $200 million between March 2024 and March 2025. According to reports, e.l.f. Beauty is to part with $800 million in cash and stock, while the remaining $200 million will be paid after the rhode brand reaches a future sales target. 

Despite the sale, the leadership of the brand is not expected to change as Hailey Bieber will continue as the chief creative officer; the co-founders plus other top executives are also expected to retain their positions. 

Why investors are paying attention to these influencer-backed brands

Rhode’s sale is not just a financial milestone, it is a good omen for celebrity-backed brands in the business world. Due to their reliance on social media popularity and personal image, these brands were once considered risky or gimmicky. However, a sale of this magnitude shows that they’re now seen as investment-worthy. 

Over the years, there have been a number of celebrity-endorsed businesses. These ventures range from beauty products and fashion lines to entertainment ventures like an online casino in Ontario. Many influencers have built strong followings in major markets worldwide, giving them the power to promote products and services to millions of people. 

Some online casinos have collaborated with celebrities on developing online casino games. Many of these influencers have a big presence in Toronto, as well as many other major cities across the world. Drake is a notable example. In 2022, he partnered with the crypto casino and sports betting platform Stake, although he later ended his association after a dispute with the company.

Make no mistake, rhode is not the only celebrity-backed beauty line to have attained impressive status. Rihanna’s Fenty Beauty and Kim Kardashian’s SKIMS are also perceived in a similar light. Celebrity influence can drive interest toward a brand, but business acumen and genuine connection with consumers matter too. Rihanna’s performance at the Superbowl LVII in 2023 allowed her to build a brand connection with her fans for the Fenty brand. 

For investors, viral traction, business prospects and long-term brand storytelling are important. Many celebrity-backed brands have excelled in these areas, and the market might begin to see more mergers, acquisitions and venture capital interest after the rhode sale.