Dive Brief:
- Following a year of rapid sales, Topicals, a skincare company, has raised $10 million in financing from CAVU Consumer Partners, the brand announced on Thursday. Jenna Jackson, principal of growth at CAVU Consumer Partners, will become a member of the company’s board.
- The company did not disclose its earnings in 2021 but said it had tripled its revenue last year after its founding in 2020. According to the announcement, the brand has multiple noteworthy investors, including Gabrielle Union, Kelly Rowland, Yvonne Orji and Marcy Venture Partners, which was co-founded by rap artist and businessman Jay-Z.
- The company said it plans to use the funding to jumpstart its omnichannel growth, hire more employees, expand across more channels and support its marketing efforts. It is also launching a 12-month accelerator program to give mental health-focused nonprofits mentorship, leadership training and business advice, per the press release.
Dive Insight:
The investment in Topicals comes as consumers increase their spending on beauty and skin care products. A report from The NPD Group released in August noted that shoppers with salaries more than $100,000 had spent almost 9 billion dollars on beauty products during the first half of 2022, a 14% bump from 2021. While nearly three-fourths of women overall use facial skin care products, and 67% use makeup, The NPD Group found.
“I love CAVU’s focus on mission-driven brands and from the first conversation with their team, it was clear that they shared our vision of disrupting the ointment category. They’re very hands-on with their portfolio brands, which was the biggest differentiator,” Olamide Olowe, founder & CEO of Topicals, said in a statement. “At this stage of growth, it’s crucial for us to have an investment partner who can provide value outside of capital, and with CAVU we have a team of experts ready to roll their sleeves up and do the hard work of taking this brand to the next level.”
In the announcement, Topicals said the company has sold one product per minute so far this year, making it one of the fastest-growing skincare companies available at Sephora. Both Sephora and Ulta have cultivated emerging beauty brands in recent years. In July, the retailer entered a wholesale collaboration with the DTC beauty brand Glossier.
In 2019, the retailer unveiled a concept called the Next Big Thing in New York City, where the brand showcased up-and-coming makeup brands. That same year, Ulta Beauty introduced Sparked at Ulta Beauty, a platform highlighting digitally-native brands.
