US-based consumer products retailer Brandless announced yesterday it has shut down, 18 months after raising $240m in a series C round led by internet and telecommunications group SoftBank’s Vision Fund.
Founded in 2014, Brandless sold a range of ethical food, cosmetics, household goods and wellness products through an online platform, initially pricing its range at $3.00 per item before expanding that basic price point and moving its products into retail stores.
The company said in a blog post revealing the news: “After more than two amazing years of bringing customers across the country better for you and better for the planet products, Brandless is halting operations.
“While the Brandless team set a new bar for the types of products consumers deserve and at prices they expect, the fiercely competitive direct-to-consumer market has proven unsustainable for our current business model.”
The company had emerged from stealth in 2017 with $50m, $35m of which had been secured in a series B round backed by GV and NEA. Its early investors included Redpoint, Sherpa Capital, Cowboy Ventures, Slow Ventures, Stephen Curry and Nick Young.
The series C round valued Brandless at just over $500m and included GV, the corporate venturing unit formerly known as Google Ventures, in addition to venture capital firms Redpoint Ventures, New Enterprise Associates (NEA) and Sherpa Capital.
However, roughly $100m of the series C funding was reportedly never committed to the company, due to its failure to hit certain financial targets. It has let go of approximately 70 of its 80 employees, with the rest to stay on while outstanding orders are resolved.
Photo courtesy of Brandless.
