Oddity Tech Ltd. (‘Oddity’) operates as a consumer tech platform that builds to transform the global beauty and wellness market.
The company’s technology innovations, world-class physical product range, and compelling brands built to win online have enabled its accelerated global growth by delivering consumers what to be product and experience.
The company operates in categories that have built a rapidly scaling model, leading the industry in two powerful secular trends. First, the consumer mi...
Oddity Tech Ltd. (‘Oddity’) operates as a consumer tech platform that builds to transform the global beauty and wellness market.
The company’s technology innovations, world-class physical product range, and compelling brands built to win online have enabled its accelerated global growth by delivering consumers what to be product and experience.
The company operates in categories that have built a rapidly scaling model, leading the industry in two powerful secular trends. First, the consumer migration online, where it is already a dominant direct-to-consumer platform. Second, the consumer shift to science-backed products that truly solve their pain points, where its investment in ODDITY LABS positions it to lead in developing high-performing ingredients and formulations in the market.
Since launching in the United States in 2018, the company has disrupted the way millions of consumers shop for beauty products by bringing them online and transforming their shopping experience, deploying algorithms and machine learning models to deliver a precise product match and a seamless shopping experience.
The company’s online platform supports a portfolio of stand-alone brands and serves approximately 60 million users as of December 31, 2024.
The company’s commitment to innovation through its proprietary technology is matched only by its commitment to developing empowering products of the highest quality, marrying the worlds of technology and physical beauty and wellness products for the benefit of consumers.
In 2023, the company acquired Revela, a Boston-based biotechnology company pioneering pharma-grade technology to discover molecules and formulations for beauty and wellness applications. With this acquisition, it established ODDITY LABS to unleash the full force of advanced biotechnology and digital biology, including AI-based molecule discovery, for the development of high-performing beauty and wellness products from proprietary molecules.
IL MAKIAGE, the company’s first brand, is an online beauty brand in the United States, as measured by revenue, with a growing presence overseas. SpoiledChild, the company’s second brand, launched in 2022, is a multicategory wellness brand, including hair and skin products. The company’s in-house New Ventures brand incubator has a mandate to pursue additional brands and product categories ripe for disruption, such as Brand 3, a telehealth platform, and Brand 4, which are both currently in development.
The company intends to sustain its high-growth and attractive margin profile that consistently delivers great outcomes for its stakeholders. To do this, it maintains a long-term growth strategy that guides its continued investments that support profitable growth and market share gains within a large and attractive global beauty and wellness market. These include growing the company’s user base, converting users into customers, increasing customer loyalty and share of wallet, expanding its global footprint, growing its existing brands, and expanding its portfolio of brands and services.
Platform
The company operates a different model from that of the incumbents that have historically dominated the global beauty and wellness market. This distinctive approach is core to the company’s competitive advantage and ability to disrupt the market and gain market share.
Outsiders by Design: Disrupting a market requires outside thinking. The company’s organization is built entirely by beauty industry outsiders, who come with fresh thinking, a focus on innovation, and a desire to drive continuous improvement. The company’s founder-led management team saw an industry ripe for disruption after observing the disconnect between online beauty discovery and offline purchasing behavior. As the company’s name suggests, its corporate DNA values the ability to be unconstrained by historical conventions. It is uncompromising in its mission to make the first move, set the pace for the industry, take big swings, and continuously raise the bar - a wild vision combined with hard work and a hands-on approach.
Technology First: The company’s business model is centered on its in-house technology capabilities, with leading expertise in data science, machine learning, and computer vision. It operates a cutting-edge R&D and technology center in Tel Aviv that is fully integrated with its business operations in New York City, and a biotech lab in Boston. The company’s investments in and focus on recruiting top technology talent are a key component of its strategy, and it expects its technology roadmap will define the future of beauty.
Data Drives the Company’s Business: The company deploys its technology to better understand customers and anticipate their wants and needs. Its data moat drives all aspects of its business, including revenue, product recommendations, marketing and retargeting, distribution, operations, and development of new products and brands. The company brings visitors to its website, turns visitors into users by asking questions and learning about them, then leverages the data it has across the platform to convert them into paying customers and repeat customers. This data is also critical to training its collection of machine learning models that drive the user journey across acquisition, purchase, and post-purchase. Once a user is onboarded, the company is able to market additional products and services at lower incremental costs, supporting favorable returns on capital.
Superior Product Performance: The company’s data-centric strategy enables it to create and deliver superior products for its customers. From inception, it constructs each brand by thoughtfully leveraging data and employing an exhaustive testing process with the company’s global user base to determine product-market fit and develop ingredients and formulations. The company is committed to only launching a product when its user data shows there is a real consumer need and that its product quality gives it the ability to win. In addition to developing products with ingredients available to the broader industry, it is investing in proprietary ingredients with ODDITY LABS, the company’s in-house biotechnology that deploys cutting-edge technology, including AI-based molecule discovery, to identify and launch novel ingredients that deliver superior performance and outcomes for consumers.
Disrupting a Massive Market with Technology
ODDITY is powered by the company’s vision and commitment to revolutionize the beauty and wellness industry through technological innovations and outside thinking. The company has built a holistic, end-to-end customer journey, with each of its user touchpoints seeking to enhance and optimize the overall experience. The company’s integrated model aims to eliminate significant friction, bringing discovery, product matching, tutorial, purchase, and repeat engagement under a single platform. It requires significant investments in technology talent, capabilities, and products.
Technology Talent
The company operates an elite technology organization, and technology is at the center of everything it does. An ethos of innovation, creation, agility, and disruption permeates its entire company. The company’s dedicated workforce includes in-house engineers, data scientists, computer vision experts, and product teams that comprise over 40% of the company’s online platform headcount. Based in Tel Aviv, one of the most advanced R&D hubs in the world, ODDITY’s R&D organization has attracted talent from elite Israeli technology centers, including the Israeli Defense Forces’ Unit 81, its Special Operations Division’s technology unit.
The company’s tech team is integrated with the business teams, working hand-in-hand across areas, such as growth, customer experience, marketing, and product development to drive the business. The company’s operating method allows it to keep a strong pace of innovation and execution as it scales. Tech squads are devoted to key domains, each organized as a small standalone startup with dedicated project managers, software developers, and quality assurance teams. This allows all teams to push domains in parallel and avoid bottlenecks. The company works in weekly sprints that include planning, coding, deploying, testing, analyzing performance, and optimizing.
Technology Products
The company’s platform delivers the future of beauty and wellness to consumers by addressing the complex demands they face when buying online. The company’s core technology products should and will serve multiple brands:
Artificial Intelligence: The company deploys AI and machine learning models across a wide range of front- and back-end operations. These include marketing and customer acquisition, product matching and recommendation, customer experience, and operations. The company additionally uses AI to support molecule discovery and product development at ODDITY LABS.
Computer Vision: The company’s computer vision tools support customers in their online experience. These tools allow it to identify skin conditions, such as acne and hyperpigmentation, track those conditions over time, and anticipate how those conditions will progress. The company acquired hyperspectral vision technology in 2021 through the purchase of Voyage81.
PowerMatch / SpoiledBrain: The company’s proprietary algorithms and machine learning models match customers with accurate complexion and beauty products. Using artificial intelligence and computer vision, PowerMatch and SpoiledBrain help users identify the correct products, formulations, and shades, reducing the risk of incorrect selection and eliminating the need to physically try on products in-store. The company uses many real-time predictions drawn from its pool of user data and is constantly improving its models to increase accuracy and conversion.
Kenzza: Kenzza, the company’s proprietary and patented platform, brings video-on-demand content and experiences that change the way users buy beauty online by providing content and education that leads to high user confidence and lower friction. This custom-built digital media platform allows the company to scale content easily across a wide range of creators and geographies.
Powerhouse Brands
The company builds and scales digitally native prestige beauty and wellness brands with strong brand equities off of the ODDITY platform. It launched IL MAKIAGE in the United States in 2018 as an online beauty brand and SpoiledChild in 2022 as an online wellness brand, and it plans to launch additional brands off of its platform in the future, with Brand 3 and 4 already in development. The company’s product portfolio spans categories, including face and complexion, eye, brow and lip products, makeup tools, skincare, haircare, and supplements. These products are designed specifically for its direct-to-consumer and online customer base. The company has made significant R&D investments in support of developing exceptional quality beauty and wellness products that drive adoption, customer loyalty, and repeat purchasing behavior. The company’s in-house R&D center works directly with its third-party manufacturing partners to develop or identify the precise product formulas that best achieve its stringent data-centric performance and quality criteria.
IL MAKIAGE
IL MAKIAGE is a prestige, digital beauty brand powered by ODDITY’s consumer tech platform, which leverages data science, machine learning, and computer vision capabilities to deliver high-quality online experiences for consumers.
IL MAKIAGE defines and builds the future of beauty by using ODDITY’s unparalleled technology to connect people with a superior, painstakingly tested, wide range of beauty products, including face and complexion, skin, eyes and brows, and lips.
Since the brand’s launch in 2018, according to the company’s customer surveys, IL MAKIAGE has converted millions of consumers from shopping for beauty products in stores to making purchases online and disrupted the industry in the process.
SpoiledChild
The company launched its multi-category second brand, SpoiledChild, in February 2022 with the goal of disrupting the wellness industry. SpoiledChild is a prestige online-only wellness brand powered by ODDITY’s scalable technology platform, including its AI and machine learning capabilities. SpoiledChild offers a range of superior products and sustainable design, including skincare products, haircare products, and supplements.
Empowering a new generation of consumers to redefine the rules of aging, SpoiledChild allows consumers to control their future by offering an individualized approach to age control.
In addition, SpoiledChild seeks to promote sustainability with its patented refillable packaging, designed to reduce waste.
ODDITY LABS to Power Product Discovery and Development
The company established ODDITY LABS to bring biotechnology and AI-based molecule discovery to beauty and wellness. ODDITY LABS is designed to deepen the company’s competitive advantage by supporting the development of proprietary, science-backed, and high-performance products for the benefit of consumers all over the world.
ODDITY LABS operates a biotechnology research and development lab in Boston, at the center of biotechnology talent and innovation.
Seasonality
The company’s revenue is typically highest in the first half of the calendar year, and its revenue generally declines in the third and fourth quarters of each calendar year relative to the first and second quarters of each calendar year (year ended December 31, 2024).
Sales and Marketing
The company’s sales and marketing capabilities represent a core and differentiated competency that is essential to the success of the ODDITY platform. It is focused on continuing to acquire new users efficiently, and building brand awareness and a demand generation engine.
The company has invested heavily in building a talented in-house marketing team, while also developing proprietary technologies that enable it to build data-driven and highly personalized campaigns that can scale globally on digital platforms.
The company’s proprietary technologies and robust first-party database enable it to achieve cost-effective and data-driven digital marketing and user acquisition. The company also designs innovative marketing programs that help increase brand awareness.
Distribution and Fulfillment
The company primarily utilizes third parties to warehouse and distribute its products throughout the world. It is continually assessing its fulfillment and distribution network to align its capacity with anticipated regional sales demand and planned expansion into new markets. Additionally, the company continually looks for opportunities to improve the customer experience and lower costs through the implementation of new processes and technology.
The company utilizes multiple outbound carriers for customer order fulfillment and distribution across the various markets where it operates. The company’s shipping carrier network is optimized to achieve targeted delivery times while minimizing costs.
Government Regulation
The company’s products are subject to regulation by the U.S. Food and Drug Administration (the ‘FDA’) and the Federal Trade Commission (the ‘FTC’) in the United States, as well as various other local and foreign regulatory authorities, including those in the EU, and other countries in which it operates.
The company relies on expert consultants for its EU product registrations and review of its labeling for compliance with the EU Cosmetics Regulation.
In the United States, numerous federal and state laws, rules, and regulations, including data breach notification laws, and federal and state consumer protection laws and regulations (e.g., Section 5 of the FTC Act), govern the collection, use, disclosure, protection, and other processing of personal information that apply to its operations or the operations of its partners.
Internationally, virtually every jurisdiction in which the company operates has established its own data privacy and security legal framework with which it must comply, including, but not limited to, the EEA, the U.K., and Israel.
Intellectual Property
The company’s primary trademark, IL MAKIAGE, and its logo have been registered in the United States, as well as in a number of foreign jurisdictions, including Israel. The company also owns several trademarks for which applications for registration are pending, including, among others, SpoiledChild. As of December 31, 2024, the company owned approximately 236 trademark registrations and 52 applications for trademark registration worldwide.
As of December 31, 2024, the company had also registered various domain names that it uses in the conduct of its business, including ilmakiage.co.il, ilmakiage.com, and spoiledchild.com.
The company owns certain trademarks and trademark applications that are important to its business, including, among others, ODDITY, IL MAKIAGE, and SpoiledChild.
History
Oddity Tech Ltd. was incorporated in 2013.
