UK-based online fashion retailer boohoo has announced a strategic investment in beauty product company Revolution Beauty Group.

The financial details of the transaction were not disclosed, but the investment will give Boohoo a 7.1% direct interest in Revolution Beauty’s issued share capital.

This will make boohoo the fourth largest shareholder in Revolution Beauty.

The two entities have an existing partnership under which boohoo sells a wide range of Revolution Beauty products through its direct-to-consumer brand websites, as well as its online digital department store Debenhams.

boohoo’s announcement comes after Revolution Beauty flagged certain accounting issues raised by auditors, which could impact the company’s financial results for the year, on 11 August.

In a statement, boohoo said: “The investment reflects boohoo’s belief in the growth potential of Revolution Beauty and it intends to be a supportive stakeholder and long-term partner.”

Founded in 2006, boohoo sells clothing, accessories and other beauty products to a Target demographic of ‘young, value-orientated’ customers.

In 2017, the company acquired women’s clothing company Nasty Gal to expand its offering, later buying the brand and intellectual property of MissPap in 2019.

In May 2020, boohoo fully acquired UK-based fashion retailer PrettyLittleThing (PLT) for an initial consideration of £269.8m, having purchased the remaining 34% shares from minority shareholders.

In the same month, the company successfully raised £200m to fund future acquisitions.

boohoo also bought the intellectual property assets of British brands Dorothy Perkins and Wallis and Burton in February last year.

The company’s other acquisitions include brands such as Karen Millen, Coast, Warehouse and Oasis.

As of 28 February this year, boohoo serves nearly 20 million active customers across its brands worldwide.

Founded in 2014, Revolution Beauty sells makeup, skincare and hair products at Boots, Superdrug, Ulta and Target stores, as well as online.