The company that led to dozens of startups describing themselves as a “Birchbox for X,” beauty sample box provider Birchbox, has raised $60 million in Series B funding, valuing the company at $485 million. News of the deal was first reported by Fortune.
The new funding was led by Viking Global Investors, and saw participation from First Round Capital, Accel Partners, Aspect Partners, and Consigliere Brand Capital.
Birchbox helped to pioneer the concept of monthly boxes shipped to your home, paid for on a subscription basis, with its shipments of beauty samples for just $10/month. What makes the company different from many of those who later copied this business model for everything from underwear to art, is that it also sells the full-sized products to those customers who liked the samples they received. This now accounts for 30% of its revenue, says Fortune’s post, which is, in total, $125 million per year.
The New York-based company today has 250 employees, has worked with 800 brands, and counts 800,000 subscribers. The company has also expanded into Europe through the acquisition of France’s JolieBox in 2012, and launched a Birchbox for men that same year. More recently, it launched its first retail store in Manhattan, to help customers learn about the company and vice versa.
Previously, Birchbox had raised $12 million in outside funding. The additional investment will be put toward marketing campaigns, including TV and magazines ads, says Fortune, as well as possibly further international expansion, including Canada, and developing its own brand of products.