PARIS — Oh My Cream has received a multimillion-euro capital injection to help back its rapid development.
The four-year-old French retailer, which sells a highly curated selection of beauty products both online and through its own store network, raised 6 million euros, or $6.5 million at current exchange, of funding through Otium Capital.
Oh My Cream was founded in 2012 by Juliette Lévy, who parlayed her passion into a profession when she was fresh out of ESSEC business school.
“I’m a huge fan of beauty products; when I was 16, I babysat every evening just to pay for my Sisley creams,” the executive told WWD Beauty Inc, WWD’s sister publication, in 2014. “Women were a bit fed up with the brands they find everywhere. I thought there was room for a new distributor that would actually select and curate the best, the most-cutting edge.”
Today, Oh My Cream sells more than 1,000 references with beauty expert advice online and via its five freestanding boutiques in Paris and Provence. The labels it carries, including Esthederm, Dermalogica and Tata Harper, span the face, body, makeup and hair categories. “Our concept is universal,” stated Lévy.
With the help of Otium’s financing, Oh My Cream’s freestanding boutique count should quadruple to 20 as soon as next year.
This marks a second round of financing for Oh My Cream. The 1.6 million euro, or $1.7 million, initial backing from angel investors allowed for the opening of the retailer’s first five shops, plus its site development.
“The cosmetics market is undergoing a full change: A new generation of consumers with radically different expectations are establishing themselves. Digital is reinventing the ways of distribution and communication,” stated Antoine Fine, the partner who heads up Otium Capital’s consumer division. He added such entrants are destabilizing the industry stalwarts, and that Oh My Cream is a symbolic actor in this transformation.
Fine said the company’s manner of selective distribution responds perfectly to consumers’ need today for authenticity, reassurance and service that traditional retailers don’t address.
“In the U.S., Bluemercury developed with a similar positioning,” explained Fine, referring to the beauty retail chain that was purchased by Macy’s department store for $210 million in 2015, when it had 60 points of sale. “The development potential is therefore enormous for Oh My Cream.”
He added: “We see great opportunities in this sector.”
Paris-based Otium Capital has already invested this year in the cosmetic and well-being space, by taking stakes in the Merci Handy hand-wash brand and Let’s Ride cycling studios.