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GlossGenius gets $25m boost to expand, add more tools

Sep 27, 2022
Illustration of mechanical robot arms holding a makeup brush, lipstick, and a mascara wand.

Illustration: Gabriella Turrisi/Axios

GlossGenius, a back-office management platform, raised $25 million to usher small beauty and wellness businesses into the digital age.

Why it matters: The beauty segment attracted about $2.94 billion from venture funds last year, per PitchBook.

  • While investment has slowed this year, PitchBook says VCs are still paying up for brands that embrace technology.

What’s happening: The Series B round was co-led by Imaginary Ventures and Bessemer Venture Partners. Left Lane Capital participated.

  • GlossGenius was last valued at $117 million as of May 2021, per PitchBook. The company is now more than 3x its prior valuation, the company tells Axios.

What’s next: Fresh funds will finance hiring and product development, CEO Danielle Cohen-Shohet says.

  • New York-based GlossGenius also hopes to augment its fintech capabilities as well as to provide vertical software beyond just managing workflows.

How it works: GlossGenius supports owners of salons, spas and studios with their tech infrastructure.

  • This includes payments, booking, inventory, expenses, deposits, marketing and communications.

What they’re saying: “When I think about the kind of more general purpose-built platforms, they're really not capturing a lot of the nuanced workflows that business owners have and need to fully focus on the clients,” Cohen-Shohet says.

  • Back-office functions for salons and studios are industry-specific, with other platforms not accounting for nuances in actions like expense filing.
  • Most studio owners manage their back offices manually. "We’re focusing on an industry that has historically lagged in technological adoption,” she says.
  • “There's a lot of nuanced workflows that vertical software specifically can really help with, making sure these business owners flourish in our industry,” she adds.

By the numbers: The company has more than 40,000 businesses on its platform.

  • Its revenue has increased by triple-digit percentages year over year. Cohen-Shohet declined to disclose specific revenue figures.
  • GlossGenius says it has helped drive $2 billion of annualized transaction activity.
  • On average, businesses can earn 25% to 100% more revenue with its platform, GlossGenius says.
  • The company has raised $44 million to date.

What we’re watching: “Historically, during times of economic distress, there's even more entrepreneurship to come out of this,” Cohen-Shohet notes.

  • As small businesses proliferate and entrepreneurs leverage client relationships in creative ways, GlossGenius expects its own business to grow.
  • “There is a very big opportunity to think about how we can empower local service-based businesses with incredible technology solutions that larger companies have, and smaller ones should have too.”
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