Beauty Pie, a London-based online buyers' club, has successfully raised $100 million to expand its skincare and wellness business. Founded in 2016, the company offers high-end beauty and wellness products at affordable prices through a unique membership model. Customers can join the buying club for a month (£10/$15) or a year (£59/$59) to access deep discounts on Beauty Pie's private-label products.
The company's success can be attributed to its innovative approach to sourcing and selling high-quality products from various producers under its own brand. This allows Beauty Pie to compete with top brands while offering lower prices to its members. The company claims that traditional brands typically mark up their products by 10 times the cost of production.
In September 2021, Beauty Pie raised $100 million in a Series B funding round co-led by Index Ventures and Insight Partners. Previous investors, including Balderton Capital, General Catalyst, and Latitude VC, also participated in the round. To date, Beauty Pie has raised a total of $170 million. Although the company's valuation remains undisclosed, it is estimated to be less than $1 billion.
Beauty Pie's impressive growth is evident in its annual and monthly subscriber figures. According to Danny Rimer, a partner at Index Ventures, the company's customer retention rates are higher than those of Spotify and Netflix, and 20 times higher than other direct-to-consumer beauty companies. In just 48 months of operation, Beauty Pie's membership has more than doubled, with revenues growing by over 100%. The company also achieved profitability for the first time in 2021.
The funds raised will be used to expand Beauty Pie's product offerings, open new warehouses, enter new markets, and potentially launch pop-up retail locations. The company's focus on providing high-quality products at affordable prices and its commitment to sustainability and recyclable packaging has resonated with consumers and contributed to its success in the competitive beauty industry.
Caroline Hirons, a skincare expert, recommends several Beauty Pie products, including Youthbomb™ 360° Radiance Concentrate, Plantastic™ Apricot Butter Cleansing Balm, Super Healthy Skin™, Dr Glycolic™, Japanfusion™, Super Retinol, and more. As the first luxury beauty buyers' club, Beauty Pie continues to revolutionize how consumers shop for skincare, makeup, body care, hair care, fragrances, scented candles, and nutritional supplements.
