Beauty Pie describes itself as an exclusive luxury beauty buyers club. ‘Like the Costco of lab-direct luxury beauty.’ Membership is open for customers based in the U.K. or U.S. can purchase directly online by paying monthly or yearly, to receive deep discounts on items.
The Canadian founder, Marcia Kilgore said in an interview “I don’t believe in business models where you spend tons on marketing. We want to focus on opening new warehouses, moving into new territories and maybe some pop-ups. We are Sephora meets Costco”
The funding — a Series B — is being co-led by Index Ventures and Insight Partners, with previous backers Balderton Capital, General Catalyst and Latitude VC.
Beauty Pie’s model is to source and buy high-end product from a range of white labelers and then sell them under their very own private label.
This method has allowed Beauty Pie to stay competitive in the market, by providing high-quality products at a more affordable products.
The company claims that the customer retention rates are 20X higher than other DTC beauty companies, with revenues growing by more than 100%.