Beautycounter has become a $1 billion brand name after Carlyle Group investment

Beautycounter has become a $1 billion brand name after Carlyle Group investment

The Carlyle Group acquired a majority stake in clean beauty company Beautycounter, valuing it at $1 billion on Tuesday, private equity firm. This coincides with same-day investment news from baldness brand name Vegamour, and follows current, notable assets and acquisitions like Pai healthy skin care, in conjunction individual care brand name, Harry’s and Conair.

Up to now, Beautycounter has raised around $100 million in outside money and ended up being respected in 2018 at $400 million, relating to Pitchbook information. It formerly received financing from PE company TPG, that will be leaving its place after the Carlyle Group’s purchase. Mousse Partnership additionally participated in the capital round, and formerly committed to Beautycounter in 2018.

Beautycounter promises to speed up its intends to increase brand name awareness and help the rise of their omnichannel company. Beautycounter has over 65,000 separate vendors, but in addition offers through DTC ecommerce and three standalone shops.

The future, but it is here“With Carlyle, we have the opportunity to send a really loud message to the entire beauty industry, saying that, not only is clean beauty. Now, we have been the best choice in this category by an order of magnitude,” said Gregg Renfrew, Beautycounter creator and CEO.

For Renfrew, clean doesn’t merely suggest a summary of no-no components, though Beautycounter has that, too, along with its a number of over 1,800 ingredients that are forbidden. Rather clean is becoming a catchall both for “safe” and “ethical.” But Renfrew pointed to Beautycounter’s efforts in increasing its supply and sourcing chain transparency, as well as in advocating for legislative modifications.

In a declaration, Jay Sammons, The Carlyle Group’s mind of international customer, news and retail, praised Renfrew together with administrator team. “Beautycounter is a pioneer and leader when you look at the fast-growing clean beauty industry, so we see a chance to help a talented, founder-led group in amplifying the brand’s objective to alter beauty forever,” said Sammons.

Based on Inc., Beautycounter’s revenue that is annual increased 80% since 2015. In 2019, the business provided out $120 million in payment to its vendors, in accordance with its earnings disclosure declaration. Nevertheless, almost all of Beautycounter suppliers are making small to no cash, on the basis of the declaration. New specialists invested $440, an average of, to sign up, and brand name professionals — which can make up 82.2% of Beautycounter sellers — earn on average $46 every month. This will be despite Beautycounter’s regular marketing associated with financial advantages of offering services and products as a side-hustle.

In reality, Beautycounter further expanded its reach through the pandemic.

But it has maybe not deterred potential experts, as Glossy formerly stated that the organization experienced a boost that is covid-19 recruitment as individuals attempted to augment their incomes.

It started providing shoppable live-streaming in Dec. 2020, and established an on-line and pop-up that is in-store Sephora in June 2020. In March 2020, Renfrew and Beautycounter even advocated for legislative modifications.

This experience can be comparable to its investor, The Carlyle Group. Relating to Pitchbook, personal areas such as for instance capital raising and private equity have actually seen a boom recently, with both investment groups seeing a return to normalcy, if you don’t ending 2020 as a banner 12 months.

“In the area of some months, the landscape changed remarkably,” said Audrey Depraeter-Montacel, Accenture beauty lead that is global. “With a shakeup that is big through the Covid-19 pandemic, we could be prepared to see an increase in investment activity once the crisis stabilizes.”

Renfrew stated that increasing investments both in paid and unpaid social articles is going to be key towards the company’s brand name awareness plans and that live-streaming will play a very good part regarding the unpaid part. She additionally stated expansion that is international “imminent,” because are additional kinds of beauty, but she declined to offer details and timelines.

“We are constantly attempting to lead and also to disrupt,” said Renfrew. “Something that you’re going to continue steadily to see us concentrate on is exactly how we develop lasting, gluey relationships with consumers through electronic techniques and electronic mediums, like live-streaming.”

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