Il Makiage is acquiring NeoWize, an Israeli data and artificial intelligence start-up, to enhance its data science capabilities and deepen its investment in technology and data.
WHO: Il Makiage is a tech-first, direct-to-consumer beauty brand that embraces an unapologetic, maximalist approach. Combining advanced technology capabilities with superior prestige beauty products, the company’s extensive R&D team developed over 500 SKUs with uncompromising attention to detail. With their incredibly successful PowerMatch algorithms, their industry-changing e-commerce platform, and best-in-class products, Il Makiage is redefining the online beauty industry. Il Makiage was relaunched in the US in June 2018 by the brother-sister duo and entrepreneurs Oran Holtzman and Shiran Holtzman-Erel.
NeoWize was founded by two veterans of elite Israel Defense Forces (IDF) intelligence units, Omer Nevo and Yoav Cafri. NeoWize leverages data to make predictions on customer behavior even on the first visit, an approach which it claims can improve sales by 20-30 percent from the first day. NeoWize changes the way we look at machine learning, deep-learning algorithms, and technology when it comes to e-commerce. Current deep-learning algorithms focus on making the most out of the data available. NeoWize utilizes active machine learning, neural networks, and adaptive input to create more data and better data, thus increasing its predictive power even with limited available data.
WHY: The combination of Il Makiage and NeoWize allows for further innovation, bringing together complementary capabilities in AI, data science, and algorithmic thinking, for next-generation and enhanced optimization of e-commerce experiences.
IN THEIR OWN WORDS: “Il Makiage is laser-focused on staying at the forefront of the intersection of beauty, technology and data science. We’re very excited to welcome NeoWize and their incredible AI-driven and data science-backed solutions that will bolster our position as one of the leading tech and data science companies in the industry, allowing us to provide unparalleled customer experiences,” Oran Holtzman, CEO of Il Makiage, said in a statement. “Today’s acquisition marks a substantial milestone for our technology team.”
“We founded NeoWize to innovate at the cutting edge of AI, technology, and e-commerce,” NeoWize co-founder Omer Nevo said in a statement. “We are excited to join the leading next-generation digitally native beauty brand that shares the same tech-first approach. Il Makiage modernizes the way beauty consumers shop and we can’t wait to continue developing exceptional AI tools and creating the most advanced and exciting online user experiences.”
DETAILS:
- Financial details on the acquisition were not disclosed.
- NeoWize raised $1 million from Y Combinator-backed known Israeli angel investors to date.
- The acquisition follows Il Makiage’s releases of PowerMatch AI Algorithm and Kenzza, their new e-commerce platform and business model, which utilizes influencer content to link inspiration, education, trial, and purchase experiences within a singular site.
- According to WSJ, Il Makiage expects its annual revenue to exceed $70 million in 2019.
- All current NeoWize employees will remain with the team when they relocate to Il Makiage’s offices, headquartered in SoHo, New York City.
- The company will continue to support its current clients, independent of its relationship with Il Makiage.
- NeoWize co-founder Omer Nevo will join Il Makiage as Vice President of R&D, and co-founder Yoav Cafri will have the new role of Chief Data Scientist.
- In 2017 L Catterton acquired a 35.8% stake in Il Makiage for $29 million and has invested a total of about $45 million.
Photo: via Il Makiage
