Function of Beauty, a creator of customizable hair, skin, and body care products, announced that it has received a $150 million strategic minority investment from L Catterton, the global consumer-focused private equity firm.
CircleUp and GGV also reinvested during this round. The investment will accelerate the company’s product development, support its continued worldwide expansion, and build upon its already industry-leading customized manufacturing capabilities.
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, not only a privileged few. They took a problem-solution approach, utilizing each co-founder’s unique skillset. 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 a true global leader, currently selling its products in 45 markets. Across its three locations, Function of Beauty employs more than 400 people.
In July 2020, Function of Beauty launched customizable body products (body lotion and body wash) and quickly followed in October 2020 with customizable skin care products (cleanser, serum, moisturizer). These new categories were adopted faster by Function of Beauty’s customer base than any other product innovation to date and are currently among the highest-rated products the Company offers.
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,” continued Avik.
L Catterton has significant experience investing globally in differentiated consumer brands including those in the beauty and skincare space. Current and past investments include The Honest Company, Elemis, Bliss, Il Makiage, Frederic Fekkai, Nutrafol, and Tula.
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. The transaction, which is subject to customary closing conditions, is expected to close in fourth quarter 2020.