CPG startup Brandless may have raised $292M, but it's not the only startup that uses clean ingredients and minimal branding. We compare similar startups' pricing and features.
San Francisco startup Brandless has exploded over the past year.
The company, which sells a range of food and personal products directly to consumers at $3 each, raised a $240M Series C at a $500M valuation in July. Investment behemoth SoftBank led the round, with participation from investors including Google Ventures, NEA, Redpoint Ventures, and Sherpa Capital.
With $292M in total disclosed funding, Brandless would rank as the 4th most well-funded VC-backed food startup and the 3rd most well-funded VC-backed beauty startup.
The company has gained press by arguing it reduces the “brand tax” that big brands charge consumers. Since Brandless cuts out middlemen and ships directly to consumers, it can support a lower price point for all its products.
But Brandless has other strengths.
Its minimalist branding — with bold, solid colors and product advantages laid out clearly — promises transparency for shoppers. Its products tend to be some combination of organic, gluten-free, vegan, cruelty-free, and non-GMO, and its website lets shoppers quickly search by these traits.
In light of Brandless’ growth, we take a look at several other startups launching new CPG brands using:
- Minimalist branding
- Direct-to-consumer distribution
- Organic and cruelty-free products
- An emphasis on transparency
- Products in multiple categories across food, personal care, and home care