The first luxury beauty buyers’ club headquartered in London, BEAUTY PIE is eyeing to capitalise on the surge in the online sales of beauty products. Now, the startup has picked up £72 million in a Series B funding round.
Growth plans ahead
The investment round was co-led by Index Ventures and US-based global private equity and venture capital firm Insight Partners. Also, existing investors Balderton Capital and General Catalyst and Latitude VC, sister fund to London-based seed investor LocalGlobe took part in the round. This round takes the overall funding raised by BEAUTY PIE to £126 million.
BEAUTY PIE plans to use the funds to turn the high-markup beauty industry upside down, with more warehouses, pop-up shops and a new membership model dubbed BEAUTY PIE PLUS. it witnessed exponential growth during the acceleration of D-to-C shopping during the COVID pandemic and doubled its team in FY 2021.
Danny Rimer, Partner at Index Ventures, commented: “BEAUTY PIE delivers huge value to its customers demonstrated by exceptional member loyalty over many years. It’s a model that marries true industry disruption with customer obsession – a winning combination.”
Rebecca Liu, Principal at Insight Partners, also commented: “Marcia has spent decades building businesses that genuinely treat customers the way she would want to be treated, and BEAUTY PIE is the epitome of that ethos. With its transformative value chain and membership model, BEAUTY PIE lets members have their pie and eat it too: the best products at the best prices. We look forward to our partnership with BEAUTY PIE as they continue to empower beauty and wellness consumers across the UK, the US, and beyond.”
Netflix for high-quality beauty products
Founded by Marcia Kilgore, a serial entrepreneur in 2016, BEAUTY PIE offers customers access to best-in-class quality health and beauty products manufactured by third-party labs. It includes products from suppliers in Germany, France, Switzerland, Japan, Italy, the USA and the UK at competitive prices.
As it offers beauty and wellness products at direct-from-warehouse pricing. Eventually, consumers in the UK or US can buy products directly as they join the buying club. The monthly subscription fee costs £10 while the yearly subscription costs £59.
“We are about empowerment, self-worth, and encouraging customers to demand more out of life, even if that means starting with their makeup or their moisturizer. We want millions of customers to have access to our ‘no-middlemen, no-ridiculous retailer markup’ pricing” said Kilgore.