Recode reports that Birchbox’s investor, Viking Global — who led Birchbox’s last $60m funding round in 2014 — will buy out its other existing VC investors with a new, $15m investment in the OG subscription beauty box.
That also means Birchbox’s other investors are walking away with nothing to show for the collective millions they’ve poured into the company to date.
The 8-year-old company, worth nearly $500m at its peak, has been for sale since last summer, reportedly in acquisitions with retailers like Walmart.
(Most, recently, Birchbox was courting QVC in what Recode’s sources say would’ve been a fire sale).
Unfortunately for Birchbox, none of these talks materialized, and the company is left to dig themselves out of “tens of millions of dollars in debt.”
Since launching in 2010, they’ve faced an influx of look-alike beauty boxes from competitors like BoxyCharm, Ipsy, Julep, and Sephora, to name just a few.
How do you know a market is saturated?
When you see an article like, “33 Best Makeup and Beauty Monthly Subscription Boxes for 2018.”