Bono-Backed Beautycounter Is Said to Raise About $65 Million

(Bloomberg) -- Counter Brands LLC, parent company of skin-care and cosmetics seller Beautycounter, raised about $65 million in new funding as it seeks to expand, according to a person familiar with the matter.

The financing round was led by Mousse Partners and included earlier investor TPG Growth, said the person, who asked not to be identified because the details are private. U2 frontman Bono also has previously invested in the company, which acquired a brand that his wife founded. The latest deal values the business at about $400 million, according to the person.

The Santa Monica, California-based company was founded in 2013 by Gregg Renfrew, a former retail consultant, and marketed as a brand with no harmful chemicals. Beautycounter sells its makeup, moisturizers and body wash in such stores as Target, J. Crew and Goop.com.

It also has its own e-commerce shop and a network of about 28,000 independent sellers that it calls “consultants,” who host sales events. Beautycounter products range from $18 bars of soap to $160 facial treatment sets.

Renfrew built a following for Beautycounter by touting the transparency of its ingredients. The company banned a list of 1,500 chemicals from its products and partners with environmental activist organizations.

In 2016, Beautycounter acquired skin-nutrition brand Nude Skincare from LVMH. That deal led to an investment from Bono and his wife, Nude founder Ali Hewson.

Its previous funding amounted to about $21 million, according to Crunchbase.

To contact the reporter on this story: Kim Bhasin in New York at kbhasin4@bloomberg.net.

To contact the editors responsible for this story: Nick Turner at nturner7@bloomberg.net, Jonathan Roeder

©2018 Bloomberg L.P.