Korean beauty products player gets $35m Series D

The company positions itself as a global platform for K-beauty brands such as I Dew Care, Kaja, Nooni and Pony Effect. Having started out as a distributor of third-party products – initially by partnering with cosmetics companies to provide makeup and skincare samples to customers in return for feedback – Memebox now develops its own in-house labels based on Korean fashion trends.

“We want to build the next generation of personal care brands by leveraging Korean technology across beauty categories. We work closely with our strategic partners so that together we can imagine and create the next cult product. We are laser-focused on predicting and delivering what consumers are craving and believe taking a science-focused approach is key,” said Hyungseok Dino Ha, CEO and founder of Memebox, in a statement.

JJDC is seen as an important collaborator in this context, given it offers access to Johnson & Johnson’s global capabilities and R&D expertise. JJDC is part of Johnson & Johnson Innovation, a network of complementary entities that incubate new businesses, run science and technology centers, and provide business development services.

Ha, a former employee at fashion brand Tom Ford, launched Memebox in Seoul in 2012. A year later, the company relocated its headquarters to San Francisco and then became the first Korean start-up to be accepted into Y Combinator's accelerator program. There are now also offices in Shanghai, Taipei and Hong Kong. The bulk of Memebox’s customers are in Asia.

The company has now raised $190 million to date. It secured $126 million across two Series C tranches in 2016, with contributions coming from Goodwater Capital, Altos Ventures, Cowboy Ventures, Mousse Partners, Formation Group, Funders Club, Pear Ventures, Cota Capital and Janet Gurwitch, a partner at Castanea Partners and founder and former CEO of Laura Mercier.

This followed a $17.5 million Series B round from a group of Silicon Valley-based investors including Formation 8, Goodwater Capital, AME Cloud Ventures and Founders Club. The valuation was said to be $100 million.

The global appeal of Korean beauty products is a familiar theme in private equity. Bain Capital and Goldman Sachs secured a bumper exit from Carver Korea in late 2017, having pursued an aggressive China expansion strategy. Other companies that have received PE backing include Able C&C, Press & Converting, E.CIS Cosmetic, and Clio Cosmetics.

Investor interest extends into other aspects of Korean culture, with L Catterton Asia and VIG Partners both adding eyewear brands to their portfolios, and several GPs striking entertainment-related deals. Indeed, VIG believes international fascination with K-pop, K-beauty and K-fashion can include food. It recently acquired Bonchon International, a Korean fried chicken restaurant, which has a larger footprint outside of Korea than it does domestically.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• North Asia
• Consumer
• Expansion
• North America
• South Korea
• Growth capital
• JJDC