Omy Laboratoires, a Canadian beauty tech startup, has raised CA$11M from Crédit Mutuel Equity, Fondaction, BDC Capital’s Thrive Venture Fund, and Accelia Capital. The Tech Factor found out more details about the news from the team.
Quebec City-based innovative beauty startup, Omy Laboratoires, has raised CA$11 million in a funding round. Crédit Mutuel Equity led the round, while Fondaction, BDC Capital’s Thrive Venture Fund, and Accelia Capital participated. Established in 2018 with an eco-friendly mission, the startup has 27 employees. It will use the funds to hire staff and acquire new equipment to expand its product line in North America.
The company uses 95% naturally sourced and 100% vegan ingredients that are environmentally friendly and not tested on animals. And by the end of 2023, it aims to fully use bio-based, recyclable plastic or recycled materials for packaging.
“Our products are formulated to meet clean beauty standards and contain over 95% naturally sourced ingredients, free from harmful substances that can pose a risk to human health and the environment. We meticulously choose ingredients that provide proven benefits, such as hyaluronic acid, peptides, and niacinamide. Our products undergo rigorous testing by dermatologists and are specifically designed for sensitive and atopic skin.”
Rachelle Séguin, Chemist and President of Omy Laboratories
A GVR industry report estimated the worldwide cosmetics industry to be US$262.21 billion in 2022 in size. The report also estimates that the industry will grow at a CAGR of 4.2% from 2023 to 2030. The key drivers of growth are the increasing use of skincare and personal care products and the rise in the world’s ageing population. The market is growing due to rising fashion trends and significant product innovation in skincare, hair colour, and other product formulas and packaging.
The Omy Laboratoires team aims to make its mark in this massive sector with its better-for-you products. The company has previously won the Start-Up of the Year at the 2022 RBC Canadian Women’s Entrepreneurship Awards. It was selected as the winner among more than 9,000 companies.
Two women founders embed AI in the innovative beauty startup
Rachelle Séguin, Chemist and President, and Andrea Gomez, CEO, founded the company together. The company has developed “SkinIA”, a technology that analyzes customers’ skin to create personalized dermo-cosmetic products that promote the health of any skin type.
The company claims that its personalized skin care solutions can address several problems simultaneously. These include acne, spots, redness, firmness, sebum, blackheads, sensitivity, dryness/atopy, and fine wrinkles. It chooses three active substances of natural origin based on skin examination and customer preferences. The startup believes this results in an incredibly effective multi-action skin care product for a customer’s skin. The company’s mission is to understand each individual and provide responsible, healthy, and personalized topical skincare for every stage of life while minimizing the carbon footprint of its operations.
Omy Laboratoires will utilize the funding round to expand its product line in North America. Further, it aims to continue its mission of providing personalized, eco-responsible, and healthy skincare products. In late 2021, it had invested about CA$2M to build its Quebec-City laboratory of about 7,500 square foot.
In general, there has relatively low recent activity in the beauty tech sector in Canada. A Canadian skincare company called Three Ships Beauty raised over CA$1M in January 2023, spearheaded by BDC Capital’s new Thrive Venture Fund. Fynne, a University of Toronto and Techstars startup, also raised undisclosed funds led by BKR Capital last year, as reported by Betakit. [Tip: Read the latest Canada startup funding news here].
Also read: Three Ships Beauty reels in CA$3.5M for better skincare
Also read: StartupBlink Index: Canada one of world’s best for tech startups
