Memorable scents bring in the bucks. And they have for decades -- just turn the page to one of those scented inserts in almost any fashion magazine.
But, like many legacy industries, the fragrance sector isn't immune from disruption. That's where Austin startup PHLUR hopes to leave an impression.
The company, which sells perfumes, candles and body care products through its website and at Sephora and Credo, on Tuesday announced it has raised $7 million in Series A funding. The round was led by fragrance giant Symrise Inc and including continued backing from Austin's Next Coast Ventures and a new investor, Belcorp, which is a large beauty company in South America.
And it seems PHLUR is wasting no time in putting the money towards growth. Along with the funding, the company announced it has acquired Austin-based Texas Beauty Labs, which is changing its name to The Goodkind Co.
Texas Beauty Labs was founded by Mary Berry in 2008. PHLUR CEO Eric Korman said the companies first started working together last year on a joint deodorant product called Explore Naturals that launched on Amazon. That reached $1 million in annualized revenue in the first three months.
PHLUR, for its part, has built a business around both clean, minimalistic design and specialized fragrances with natural ingredients that it pitches as "hypoallergenic, cruelty-free, vegan, sustainably sourced and packaged with recycled materials." It ships consumers a month's worth of fragrances for $18 to try out three scents -- if they like them, the money is applied to a full bottle.
Korman said the two companies are a natural fit and have a similar vision.
"When I first met Mary and heard her story, I knew that our shared vision of creating beauty products with integrity and heart could lead to some amazing opportunities," he said in a news release. "We're thrilled by our new ability to rapidly evolve and test new products, and equally important, extend this ability to empower the independent beauty community. Our combined objective: to further accelerate the adoption of clean products by mainstream customers."
