Function of Beauty raises $150 million investment from L Catterton
Function of Beauty has announced a $150 million strategic minority investment from L Catterton, the world's largest consumer-focused private equity firm.
In a press release, Function of Beauty said the investment will accelerate the company's product development, support its continued worldwide expansion, and build upon its already industry-leading customized manufacturing capabilities.
CircleUp and GGV also reinvested in the round.
Goldman Sachs & Co. acted as financial advisor and Cooley LLP acted as legal advisor to Function of Beauty. Gibson, Dunn & Crutcher LLP acted as legal advisor to L Catterton. The transaction is expected to close in the fourth quarter 2020.
Founded in 2015 by chief executive officer, Zahir Dossa, chief operations officer, Joshua Maciejewski, and chief science officer, Hien Kaplan, the company focuses on customizable hair, skin, and body care products. Starting off with personalized hair products, the company first launched its customizable body products, including body lotion and body wash, in July this year, and launched customizable skincare products including cleanser, serum and moisturizer in October.
Currently, Function of Beauty sells its products in 45 markets and operates three locations.
"In the last five years, the brand has seen phenomenal growth and this investment from L Catterton will further fuel our continued expansion," the company's co-founders said.
"We are excited to partner with a proven investor in some of the world's leading consumer brands to realize the many growth opportunities ahead. International expansion beyond our existing 45 markets will continue to be a key priority, along with the pursuit of new avenues for growth within the U.S. as we introduce more customers to the benefits of customization."
Previously, Function of Beauty raised $9.5 million in a Series A funding round led by GGV Capital in 2017.
In addition to Function of Beauty, L Catterton counts The Honest Company, Elemis, Bliss, Il Makiage, Frederic Fekkai, Nutrafol, and Tula among its current and past investments in the beauty space.
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