Dubai-based cosmetics firm Huda Beauty is considering selling all or part of its fast-growing perfume division, according to people familiar with the matter.

The firm — with more Instagram followers than Kylie Jenner and Selena Gomez’s brands combined — has lined up Goldman Sachs Group Inc. as an adviser on the potential sale of Kayali fragrance, the people said. A deal will pave the way for the fragrance and cosmetics brands to chart an independent course, they said, asking not to be identified as the information is private.

Funds from any sale will also allow the founders to buy out TSG Consumer Partners’ stake in Huda Beauty, the people said. The private equity fund acquired a minority holding in 2017.  

Deliberations are at early stages and plans for the fragrance unit may still change, the people said. Representatives for Huda Beauty didn’t respond to messages seeking comment, while a spokesperson for Goldman declined to comment.

Launched in 2013 by blogger Huda Kattan and her sisters Mona and Alya, the eponymous brand has been valued at more than $1 billion in the past. The firm sells more than a hundred products online, ranging from fake eyelashes to lip gloss and skincare products. 

It’s amassed over 54.2 million followers on Instagram, making it one of the beauty industry’s most recognized brands on social media. Rivals Kylie Cosmetics and Rare Beauty have 24.9 million and 7.6 million followers, respectively. 

Earlier this month, the Bloomberg Billionaires Index estimated that Gomez is worth $1.3 billion — a bulk of this is tied to her makeup line Rare Beauty, which is a hit with influencers and cosmetics-obsessed teens. Kylie Jenner, meanwhile, sold a 51% stake in her cosmetics line to Coty Inc. for $600 million in 2020. 

Kayali, founded and led by Mona Kattan, offers about two dozen fragrances and was launched six years ago. Its perfumes — which cost about $140 for a 100-milliliter bottle — are now sold by major retailers including Sephora USA Inc., Walgreens Boots Alliance Inc. and ASOS Plc.

There’s been a surge in merger and acquisition activity in the beauty sector in recent months as buyers try to capitalize on a jump in spending on cosmetics around the world, according to Capstone Partners. The value of such deals has jumped 37.5% so far this year compared with the same period a year ago, the advisory found. 

A potential sale of Kayali would come one year after private equity fund Advent International acquired a stake in the group behind Parfums de Marly and INITIO Parfums Privés which has a strong presence in the Middle East.