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Il Makiage Receives $130 Million Investment at $1.5 Billion Valuation

January 14, 2022
January 14, 2022
Il Makiage

Oddity, the parent company to Il Makiage, closed a $130 million secondary-market private round for an 8% stake that values the company at $1.5 billion.

WHO: Founded in 1972 by leading makeup artist Ilana Harkavi in New York, Il Makiage was relaunched in its digital-first incarnation in 2018 by brother-sister duo Oran Holtzman and Shiran Holtzman-Erel. The brand is defining and building the future of beauty by using proprietary technology to connect people with superior, painstakingly tested beauty products.

Oddity is a consumer-tech company committed to innovating and revolutionizing the beauty and wellness industries through technology. Oddity and its brands employ over 200 team members, with headquarters in New York City and an R&D center in Tel Aviv, Israel. Over 40% of the company's employees are part of its technology team as the company seeks to blend the best of technology and desirable and efficacious products. Their portfolio of brands consists of Il Makiage and SpoiledChild.

WHY: Proceeds will be used to repurchase shares from existing shareholders to diversify its investors and expand its business model.

IN THEIR OWN WORDS: "Our existing technology and roadmap are unlocking immense growth opportunities in the beauty and wellness industries and enabled us to drive a rare combination of scale, growth and profitability," said Oran Holtzman, co-founder and CEO of Oddity. "We're honored to partner with an amazing set of growth equity investors that share our view on the industry's future and will support our efforts to become the digital beauty and wellness house of the future by continuing to disrupt additional sub-categories."

“I am forever enthralled by companies that have the foresight to harness the power of technology and digital analytics to truly understand their consumer base to create new products and innovations that not only fill voids but revolutionize industries," said billionaire entrepreneur Thomas Tull. "Oddity is an excellent example of this kind of organization and their capabilities—and technology applications—expand well beyond the beauty and wellness industry. I am excited to partner with them on their growth plans within their industry and beyond.”

“Oddity has built a proven tech-driven platform which puts the customer at the center and provides superior online experiences," said Matt Quinlan, portfolio manager at Franklin Templeton's Franklin Equity Group. "They are a clear leader with a relentless mission to build the future of beauty and wellness. We think this is a very exciting time to invest in the company as the beauty and wellness industries undergo significant changes and continue to shift online. Oddity's business and pace of product and tech innovation are accelerating, with a substantial opportunity still ahead that is expected to produce long term value creation.”

DETAILS:

  • Oddity, the parent company to Il Makiage, closed a $130 million secondary-market private round that values the company at $1.5 billion. The investment was led by Thomas Tull, Franklin Templeton, Fidelity Management & Research Company LLC, and First Light Capital Group with participation from additional growth equity investors.
  • L Catterton and the brand’s founders sold 8% of their ownership of the company.
  • Il Makiage has grown from $25 million in 2018 to $268 million in revenue with very strong profitability in 2021. The business is 100% DTC with 95% of revenue generated from the brand's website, and 75% of sales come from the US.
  • In 2017 L Catterton acquired a 35.8% in the business for $29 million, increasing its investment to $44 million.
  • In August 2021, Il Makiage acquired Voyage81, an Israeli artificial intelligence computational imaging start-up, for $40 million.
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