Austin-based spa and product line Milk + Honey raised $7 million to fund growth of additional spa locations and expansion of their product line.

WHO: Milk + Honey was founded in 2006 by Alissa Bayer, who opened her first location in downtown Austin. The business now operates six spa locations in Texas—four in Austin, one in Houston, and one in Fort Worth. The locations offer a full range of spa treatments and a branded product line.

IN THEIR OWN WORDS: “We’re actively looking for two locations in Los Angeles,” Bayer told The Statesman. “Milk + honey is also expanding its salon location in the Arboretum Market to a full-service spa with over 10,200 square feet.”

“The current funds will allow us to grow aggressively for the next few years,” she said. “I sold a very small amount of equity at this stage, in anticipation of raising a much bigger round in a few years, to help us really scale and bring milk + honey to more markets.”

DETAILS:

• Milk + Honey raised $7 million in growth capital .
• The lead investor was Keller Capital of Austin, with participation from Emil Capital Partners of Greenwich, Conn., and Austin-based entrepreneur, author, and podcaster Tim Ferriss.
• The company posted $20 million in revenue in 2018 and expects more than $25 million in revenue in 2019 and is profitable.
• The business was founded raising $400,000 from friends and family and securing an SBA loan.