Subscription-based fragrance company Scentbird raises $18.6 million in funding
New York-based digital fragrance company Scentbird announced on Thursday that it has secured $18.6 million in series A funding, money which will go towards improving customer experience and accelerating innovation and expansion.
The funding round which, according to Scentbird, amounts to one of the largest series A funding rounds achieved by a female-led direct-to-consumer brand, was led by consumer technology firm Goodwater Capital.
Scentbird currently makes 95% of its revenue through its subscription service, which allows consumers to choose from a catalog of over 500 men’s, women’s and unisex fragrances every month.
The company captures 1% of the prestige fragrance market, a figure it is hoping to double within the next year.
“We are excited to launch Scentbird into the next stage of its growth,” said CEO and Co-Founder Mariya Nurislamova in a release. “Attracting investors who understand the unique digital landscape and what we offer consumers, will bolster our position in the beauty industry on a larger scale.”
Over the last year, the brand has seen 110% growth, with subscriber numbers skyrocketing from 400 at the time of its initial seed round to 250,000 around the US today. The platform also recently added to its catalog of fragrances with a namesake range of personal care and home fragrance products.
Explaining the reasoning behind Goodwater Capital’s investment, the firm’s Co-Founder and Managing Partner Eric Kim stated, “At Goodwater Capital our focus is on supporting entrepreneurial innovators who are not only disrupting product categories but who are also challenging the status quo.”
Indeed, online subscription services such as Scentbird are looking like an interesting investment at the moment, as they have been proving quite successful in shaking up the fashion, luxury and beauty industries, carving out niches in product categories ranging from cosmetics – see Glossybox, for example – to children’s apparel, as in the case of Kidbox, which recently secured $15.3 million in series B funding.
Goodwater was joined in Scentbird’s series A funding round by Y Combinator, Rainfall Ventures, FundersClub, Soma Capital, Scrum Ventures and ERA, among others.
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