Memebox, a Y Combinator startup that sells Korean beauty products in the U.S. and Asia, has raised $60 million. The cash is an extension of the firm’s Series C round which initially closed at $65.95 million in August.
The company said the money will go towards continuing its operations and increasing its global footprint. Korea, its home market, remains its largest country for sales, but the firm is increasing its focus on China and, in particular, the U.S.. Founder and CEO Dino Ha recently relocated to San Francisco from Seoul.
The new money takes Memebox to more than $160 million in investor money since it was founded in 2012. The round extension was put together by a range of existing and new backers, which include Goodwater Capital, Altos Ventures, Cowboy Ventures, Mousse Partners, Formation Group, Funders Club, Pear Ventures and Cota Capital. Janet Gurwitch, a partner with Castanea Partners and former CEO of cosmetics brand Laura Mercier, also invested and will become a member of Memebox’s advisory board.
Memebox began as a beauty box service, providing a selection of cosmetics and products each month for a fixed fee, but as pioneers of business model such as Birchbox struggle, it evolved into a makeup and cosmetics store. Thanks to the rise of K-Pop and Korean drama series, the company has been able to surf a global wave of interest in Korea to expand its customer base.
Today, Memebox sells its own brand products as well as those from third parties and industry names. It operates physical stores in Korea, but is predominantly focused on online. Indeed, it claims that, worldwide, an average of 88 percent of purchases come via its mobile — that figure rises to 94 percent for Asia-based customers. It said its annual revenues are over $100 million, but it is not yet profitable.
