Egyptian beauty e-commerce platform Source Beauty has sold a majority stake to the Egyptian Company for Cosmetics (ECC), one of the leading beauty and personal care manufacturers in the country.
Launched in 2018, Source Beauty is a women-led one-stop-shop with over 85 local and international beauty brands and 60,000 users. The marketplace provides customers with affordable and easy access to beauty products, and exposes them to products sourced from the best raw materials by female start-ups. It also provides established and emerging brands with an interactive shop window.
ECC, meanwhile, offers 360-degree services in manufacturing and distributing scientifically-proven innovative cosmetic products. VC firm Lorax Capital Partners recently acquired a significant minority stake in ECC and is supporting the company’s expansion plans.
The acquisition of Source Beauty provides a substantial opportunity to offer an enhanced service to Source Beauty’s clients, including new product innovation and manufacturing know-how. Lydia Schoonderbeek, the founder and CEO of Source Beauty, will continue in her role in addition to assuming the role of chief creative officer of ECC.
“The funds will reinforce an accelerated digital and physical marketing strategy to reach a broader customer base, enhancing customer retention and brand visibility as well as expanding the team,” she said. “This strategic investment by ECC is a gamechanger for Source Beauty and we’re all hugely excited about the future. Since Source Beauty’s inception, I have been determined to change the beauty space in Egypt to truly address the needs of the Egyptian consumer.”
Dr Ahmed Abo El Hamail, co-founder and vice-chairman of ECC, said Source Beauty’s brand and company values made it a great fit.
“We are delighted to back Lydia, and believe that her continued role at Source Beauty as well as her new role at ECC complement the new chapter we are building for the group,” he said.