Dive Brief:
- Oddity, Il Makiage’s parent company, announced Monday that it secured $130 million in funding at a valuation of $1.5 billion, according to a press release.
- The investment round was led by billionaire businessman Thomas Tull, Franklin Templeton, Fidelity Management & Research Company and First Light Capital Group. Other growth equity investors also participated in the round.
- Il Makiage, the company’s first brand, exceeded $260 million in revenue last year. Oddity is also planning to launch a second brand in February called SpoiledChild.
Dive Insight:
In its effort to become “the digital beauty and wellness house of the future,” Oddity is diversifying its list of investors.
In 2017, the company received a $29 million growth capital investment from private equity firm L Catterton. Women’s Wear Daily reported that private equity firm owned a 35.8% share in the business as a result of the deal. Oddity said in the announcement that it continues to be supported by L Catterton.
Oran Holtzman, co-founder and CEO of Oddity, said the company plans to achieve its goal by disrupting more sub-categories. “Our existing technology and roadmap are unlocking immense growth opportunities in the beauty and wellness industries and enabled us to drive a rare combination of scale, growth and profitability.”
In recent years, Oddity and its brands have continued to expand tech capabilities. Already, more than 40% of Oddity’s 200 employees are in the technology team.
In August, Il Makiage acquired deep-tech AI-based computational imaging firm Voyage81. The acquisition allows Il Makiage to use Voyage81’s resources to enhance the company’s machine learning capabilities as well as set the stage for new brand launches, per the release.
“We think this is a very exciting time to invest in the company as the beauty and wellness industries undergo significant changes and continue to shift online,” Matt Quinlan, portfolio manager at Franklin Templeton’s Franklin Equity Group, said in a statement. “Oddity’s business and pace of product and tech innovation are accelerating, with a substantial opportunity still ahead that is expected to produce long-term value creation.”
