NEA Backs On-Demand Magnificence Enterprise Glamsquad In $15 Million Assortment B
New York-based Glamsquad, a startup inside the “Uber for X” class of on-demand corporations, has merely raised one different $15 million for its mobile magnificence service that brings hair stylists, make-up artists or nail techs to wherever you are – residence, office or lodge – in its place of requiring a go to to the salon. The Assortment B funding was led by New Enterprise Associates, and included participation from current consumers SoftBank Capital, Lerer Hippeau Ventures, Montage Ventures and AOL’s BBG Ventures.
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The company, at current headed by Gilt Groupe co-founder Alexandra Wilkis Wilson who joined in 2014 as co-founder and CEO, had beforehand raised $7 million in Assortment A funding in a spherical led by SoftBank Capital. So far, the company has raised $24 million.
As additional buyers grew comfortable with the considered placing orders via their smartphones for each half from taxis and black cars to groceries, presents and – the truth is – lunch, quite a lot of totally different firms began testing the waters to see if bigger-end, luxurious suppliers may even scale equally. Alongside Glamsquad, there are a superb handful of rivals on this magnificence-on-demand space, along with hair shade-at-your-door biz Madison Reed, Stylisted, Priv, and others.
Glamsquad’s additional funding comes at time when the company says it has now booked over seventy 5,000 purchaser appointments via its service that’s now working in New York, Miami, and L.A. That’s up from the ten,000 suppliers and events it had booked solely a yr prior to now, when it closed on its Assortment A. The company moreover tells us that it’s servicing lots of of consumers on a weekly basis in its current markets, and is planning to utilize the model new capital, partially, to gasoline expansions into Washington D.C., Chicago, Dallas and elsewhere.
Glamsquad is dependent upon an enormous group of execs (contractors) who’re more likely to e book jobs of their spare time for extra income. Over 300 execs work with Glamsquad instantly, and the company ensures them a 20 % tip on their suppliers. However, some inside the enterprise have complained that the company is undercutting freelancers’ expenses to have the ability to develop its enterprise. Within the meantime, Glamsquad touts that its execs might make as a lot as 1.5 to 2 events what they could make in a salon.
For now, Glamsquad generates revenue by taking a proportion of product sales – forty%, not along with tip. Nevertheless now the company is planning to open up a new arm to its enterprise. Previous selling expert suppliers, it could uncover selling its private Glamsquad-branded merchandise along with totally different e-commerce options. The company can be planning to increase its bridal suppliers.
Whereas the company simply is not disclosing revenues notably, the CEO cites its progress as concern inside the new funding.
“This financing is the outcomes of continued, doc-setting progress,” said Wilson. “Each week, we hit new appointment rely and revenue knowledge. We have quintupled our run-worth revenue from just one yr up to now…,” she well-known.