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FUNCTION OF BEAUTY RAISES $150 MILLION FROM L CATTERTON

December 11, 2020
December 11, 2020
Function of Beauty

Function of Beauty, a leading creator of customizable hair, skin, and body care products, has received a $150 million strategic minority investment from L Catterton.

WHO: Function of Beauty was founded in 2015 by CEO Zahir Dossa, COO Joshua Maciejewski, and CSO Hien Kaplan, with the purpose of bringing the benefits of customization to a broad audience. They took a problem-solution approach, utilizing each co-founder’s unique skill set. Dossa and Kaplan developed the first proprietary quiz in the industry, defining which ingredients and formulations would meet each customer’s unique goals, and Maciejewski created the first-of-its-kind custom production system to fill each order. Function of Beauty is currently selling its products in 45 markets.

The consumer enters their hair type, picks a fragrance, and chooses 5 goals. The results are put in a proprietary algorithm that works out which ingredients, and how much of those ingredients, should be used in shampoo and conditioner for each individual user. The company claims the algorithm offers up to 12 billion custom combinations.

WHY: The investment will accelerate the company’s product development, support its continued worldwide expansion, and build upon its customized manufacturing capabilities.

IN THEIR OWN WORDS: Function of Beauty’s co-founders said: “In the last five years, the brand has seen phenomenal growth and this investment from L Catterton will further fuel our continued expansion. 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.”

“Function of Beauty has cracked the code of mass customization and is poised to redefine the beauty landscape,” said Avik Pramanik, a Partner of L Catterton’s Flagship Buyout Fund. “We are delighted to partner with Zahir, Joshua, Hien, and the Company’s passionate team to grow the brand. Together, we look forward to deploying an even more aggressive growth marketing strategy in domestic and international markets while fostering breakthrough product innovation in haircare, skincare, and more.”

DETAILS:

  • Function of Beauty, a leading creator of customizable hair, skin, and body care products, has received a $150 million strategic minority investment from L Catterton. CircleUp and GGV also reinvested during this round.
  • In July 2020, Function of Beauty launched customizable body products (body lotion and body wash) and quickly followed in October 2020 with customizable skincare products (cleanser, serum, moisturizer).
  • In March 2017, Function of Beauty raised $9.5 million in a Series A round led by venture capital firm GGV Capital. This brings Function of Beauty’s total funding amount to $12 million. Other investors include Y Combinator, a seed-round investor, and newcomers Bessemer Venture Partners and SoGal Ventures.
  • 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.
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