Beauty sample subscription service Birchbox has grown into a startup success story since it first began in 2010.
The company has raised $60 million in venture capital funding through Viking Global Investors. The startup now generates $125 million in sales annually, with a networth of $485 million. The majority of this revenue comes from the tailored monthly sample boxes subscribers receive (at $10 per box), while 30 percent of sales come from the company’s e-commerce sales, these being full size versions of the sample products.
Through this recent funding Birchbox will be able to expand its operation in a big way. With the first Birchbox bricks-and-mortar store opening in sight in New York in late May beauty enthusiasts will be thrilled to have the opportunity to handpick their samples for their monthly box, or to simply sample everything in sight. The company has also acquired the French knockoff business- JolieBox. No word on when Birchbox will land in Britain, but we’ll be sure to keep an eye out for any developments.
There is also a chance of Birchbox developing its own name brand products in the future. The company certainly has enough gathered data on what its customers look for in beauty products to be able to predict our beauty needs before we do.