Beiersdorf participated in a $5 million Series B funding round in Lycl, strengthening its existing position in the Korean skincare and tech start-up.
WHO: Lycl Inc. is a Korean skincare and tech start-up established in 2013. The company combines three different business models: unpa.me, a review and content platform for K-Beauty products, palett.me, an influencer network platform, and unpa.Cosmetics, the start-up’s own skincare brand. Lycl already has a strong footprint in South Korea with the majority of product sales generated through a direct-to-consumer business model via the brand’s own website.
Beiersdorf AG is a leading provider of innovative, high-quality skincare products and has over 135 years of experience in this market segment. Its product portfolio comprises strong, international leading skin and body care brands including Nivea, Eucerin, Hansaplast/Elastoplast, La Prairie, Labello, Aquaphor, Florena, 8×4, Hidrofugal, atrix, Slek.
Oscar & Paul is the recently established platform for all internal and external ventures at Beiersdorf. True to Beiersdorf’s entrepreneurial DNA, Oscar & Paul Beiersdorf Venture Capital invests in innovative companies and start-ups, establishing long-term partnerships to drive the impact of disruptive technologies, new business models, and skincare innovations.
WHY: The funding will be used to finance future growth and international expansion.
IN THEIR OWN WORDS: “We are happy to continue supporting LYCL on its rapid growth path,” says Ascan Voswinckel, Head of Oscar & Paul Beiersdorf Venture Capital. “This decision is in line with our overall strategy of building long-term partnerships to drive innovation in the skin care industry.”
Beiersdorf first invested in Lycl Inc. in December last year after the start-up had participated in the company’s own accelerator program “NX NIVEA” in Korea since April 2019. The funding round itself as well as Beiersdorf’s investment shows the ongoing success of the NX NIVEA Accelerator. “This case proves how NX adds value to startups during their entire lifecycle. We will continue working with LYCL on several co-innovation projects as alumni of NX,” says Endrik Hasemann, General Manager, Beiersdorf South Korea.
“We are thankful for the contribution as well as the valuable collaboration from an early stage onwards with NX,” says Jeon Jihoon, founder and CEO of Lycl. “This follow-on investment shows the continuing commitment of Beiersdorf and the company’s confidence in our plan for success on a larger scale, especially beyond Korea,” he adds.
- Seoul-based Lycl raised a $5 million Series B (6 billion Korean won).
- Beiersdorf co-invested with Lotte Corporation, a South Korean multinational conglomerate.
- In December 2019 Beiersdorf acquired a significant stake making it the second-largest shareholder in the company.
- Lycl Inc. is part of the Nivea Accelerator (NX) in Korea.
- The Investment is in line with Oscar & Paul Beiersdorf Venture Capital’s strategy to support potential industry disruptors.
Photo: via Lycl