The Hut Group’s latest funding round has more than doubled its valuation as the health and beauty etail group acquired cosmetics subscription business Glossybox.

The online retail empire will sell a £125m stake to asset management business Old Mutual Global Investors, taking its overall valuation to £2.5bn, according to Sky News.

This investment will make the etail group, which has previously been valued at just shy of £1bn, one of the UK’s largest privately owned companies.

The Hut Group, which reported a 67% leap in full-year profits in May, is on track to invest around £400m this year across technology projects and beauty brands.

To this end the group, which made acquisitions totalling more than £60m last year, has snapped up beauty box subscription service Glossybox.

The health and beauty group, which also owns brands including Grow Gorgeous and Myprotein, has acquired the business from owners Rocket Internet and Kinnevik Online for an undisclosed sum.

The beauty box business was founded six years ago and became profitable in 2015. Chief executive Caren Genthner-Kappesz, who took over from founder Charles von Abercron in January 2016, will stay on in her role after the sale.

The Hut Group chief executive Matt Moulding said: ”This is another significant investment for The Hut Group. In GLOSSYBOX, we have acquired a great brand, with a solid and engaged customer base that, once powered through our platform and marketing infrastructure, should be capable of further significant growth.”

Genthner-Kappesz added: ”I am very excited about this acquisition. It was extremely important to us to find the right buyer for our brand; one that complements us and can use its retail know-how and technological capabilities to accelerate and strengthen Glossybox further in its journey of being a global industry-leading brand and a well trusted beauty advisor for our engaged subscribers.

 “I am very proud of the team and everything that we have achieved to date with Glossybox. I am confident that, in The Hut Group, we have found the right strategic partner to drive our business forward.”