Buena Park-based startup Rael Inc. picked up significantly more interest from investors last week.
The maker of natural feminine-care products announced it raised $17.5 million in Series A funding led by South Korea investment firm Mirae Asset Financial Group and GS Retail, one of South Korea’s largest retail conglomerates, which also recently invested $30 million in Marina Del Rey-based consumer goods website Thrive Market.
Rael said it plans to use the additional funds to grow its e-commerce channel and forge distribution deals with major brick-and-mortar retailers.
Co-founder and Chief Executive Yanghee Paik said the label wants to create an impact in the feminine-care category with products that don’t sacrifice comfort or performance.
“We started Rael to empower women with healthy alternatives to conventional feminine care products that are full of toxic chemicals,” Paik said in a statement.
The additional capital brings Rael’s total funding to $20.4 million—it raised $2.1 million in May—and adds investors, including Pritzker Group Venture Capital, NYX Cosmetics and Perverse sunglasses founder Toni Ko.
The company’s pre-Series A funding round in May was led by SoftBank Ventures Korea and included investment by the venture fund arm of Thrive Market.
Early investors included Irvine-based mobile phone accessories maker Spigen Inc. and Santa Monica-based venture capital firm BAM Ventures, which was founded by Brian Lee, co-founder of LegalZoom.com, ShoeDazzle and Honest Co.
Lee said in a statement that the firm “always looks for founders who have the potential to build enduring iconic brands that truly speak to and resonate with their consumers, and that’s what we found with the Rael team.”
Rael was founded last year by Paik, Aness An and Binna Won. It test-launched on Amazon in June 2017 with an organic cotton pad, selling $100,000 worth in the first month.
Last year’s sales were $2 million.
Prices range from $4.50 for an 18-pack of liners to $45 for a mom-to-be gift box.
It’s since expanded its lineup to include other feminine hygiene and beauty products, such as facial sheet masks and more recently, acne healing patches.
