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Subtl Beauty raised $5.5 million in Series A funding to expand its online makeup brand to retailers, CEO Rachel Reid tells Axios exclusively.

Why it matters: Strategic and private equity interest in beauty startups has precipitated early-stage funding for the next good opportunity.

Details: The round was led by Cult Capital. 

The working professional, traveler, mom, or makeup novice has been "an underserved consumer in the cosmetics industry," Cult co-founder Sarah Woelfel tells Axios.

Subtl's value proposition is that it's providing something functional, compact, and easy to use for the "modern, time-strapped woman," she adds.

The brand has built a dedicated, loyal consumer base, Woelfel says, which Cult will continue to help grow and scale with its investment.

Catch up fast: In 2021, Cult sold its majority stake in skin care brand Supergoop to Blackstone Growth.

In 2018, portfolio company Babo Botanicals was acquired by French pharmaceutical and dermo-cosmetic company Laboratoires Expanscience.

How it works: Launched in 2018, Subtl enables consumers to carry around its clean makeup in travel-friendly, stackable and customizable containers.

"You can get an entire full face of makeup from products that can fit in the palm of your hand," Reid says.

What they're saying: "Women now more than ever are busy and are on the go and require makeup solutions that can align with that lifestyle," Woelfel says.

There's a "bit of a gap in terms of meeting the consumer where she is," Reid says, whether they're doing their makeup in the car, the office, the gym or the restaurant bathroom.

What's next: Reid says Subtl will use the funds to recruit some "heavy-hitters" at the executive level, expand into other channels, and develop its product development roadmap in the next year and a half.

The company has "cultivated a two-way conversation" with its customers across social — whose followers number around 10.5 million — and "that's going to be an asset that we bring to a retailer," Reid says.

Plus, Subtl's "coveted customer" is also someone who isn't consuming beauty today because they're intimidated or time-strapped, and that new customer base could be attractive to retailers, she adds.

Editor's note: This story has been updated to correct the Series A amount as $5.5 million, not $5 million.

Exclusive: Subtl Beauty bags $5.5M Series A for stackable makeup

The DTC company aims to expand into retail.

illustration of loose pink makeup powder in shape of a dollar symbol next to a makeup brush

Venture capital funding

Subtl Beauty raised $5.5 million in Series A funding to expand its online makeup brand to retailers, CEO Rachel Reid tells Axios exclusively.Why it matters: <a class="gtmContentClick" data-vars-link-text="Strategic and private equity interest" data-vars-click-url="https://www.axios.com/pro/retail-deals/2023/11/16/beauty-deals-ramp-up-investors-polish-portfolios" data-vars-content-id="5d267e5e-e8fe-4818-a1d3-2de767c48d40" data-vars-headline="Exclusive: Subtl Beauty bags $5.5M Series A for stackable makeup" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/pro/retail-deals/2023/11/16/beauty-deals-ramp-up-investors-polish-portfolios" target="_self">Strategic and private equity interest</a> in beauty startups has precipitated early-stage funding for the next good opportunity.

Exclusive: Subtl Beauty bags $5.5M Series A for stackable makeup

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