Birchbox Inc., a startup that delivers a monthly selection
of beauty products to members for a fee, has raised $60 million in a new round
of venture funding led by Viking Global Investors and joined by the company’s
earlier backers. Earlier the company
raised $12 million in seed and Series A funding. Earlier backers also joined
the Series B investment in Birchbox, including First Round Capital, Accel
Partners, Aspect Partners, Glynn Capital, Comcast Ventures, Sam Lessin,
Consigliere Brand Capital, Slow Ventures, Red Swan Ventures and TriplePoint
Venture Growth BDC Corp. The New York
City startup plans to use its newly raised capital for hiring, geographic
expansion and to raise awareness about Birchbox beyond word-of-mouth, the CEO
said. The company currently employs about 250 in the U.S. and Europe. It also plans to provide partners in the
beauty industry with more data about the impact of their products being
included in a “Birchbox,” the CEO said.
While other venture-funded companies that sell packages of
select goods to monthly subscribers include NatureBox for snack foods, ADKM
Inc. known as Harry’s Razor Co. and Dollar Shave Club for mens’ grooming
products, H. Bloom and TheBouqs.com for flowers, and BarkBox for pet products,
the startup is widely viewed as a powerhouse in so-called “subscription
commerce,” in which consumers pay for monthly delivery of goods to their
doorstep.
Far from being a generic, auto-fulfillment service, she
says, Birchbox works with its partners on everything from product development
to packaging design. And as transactions go, getting a “Birchbox” is just the
beginning of a “long-term relationship with the brand,”. Typically, 10% of Birchbox subscribers go on
to buy a full-sized product (via Birchbox.com) after experiencing a trial or
sample-size in one of the company’s curated packages. Longer-term, the CEO confirmed, Birchbox is
likely to introduce a house brand, but not in the way that a beauty retailer
like Sephora might.
The startup has partnered with more than 800 beauty brands
including Lancôme, Laura Mercier, Benefit, Stila, Caudalie, Payot, L’Occitane,
Bourjois and L’Oreal. It sells more than 6,500 products on its site.
Via: WSJ
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