Oddity Tech, formerly known as Il Makiage, has captured attention with its remarkable transformation from a failing makeup company to a thriving technology enterprise. As one of the largest shareholders prepares to sell a portion of their stake, it prompts reflection on Oddity Tech’s journey, its current market standing, and the dynamics driving investor interest.

The Remarkable Turnaround: From Makeup Chain to Tech Titan

A decade ago, Oddity Tech was on the brink of collapse as Ill Makeup, a struggling makeup chain. However, under the leadership of Israeli entrepreneur Oren Holtzman, who at the time acquired control of the company for NIS 12 million, the firm underwent a significant reorganization. Central to Oddity’s operational framework lies its exclusive technology, featuring tools crafted by a former Israeli defence expert. With strategic vision and innovative approaches, Holtzman and his team transformed Il Makeup into Oddity Tech, positioning it as a technology company specializing in beauty and wellness.

Central to Oddity Tech’s evolution is its consumer technology platform, leveraging machine learning models to offer personalized makeup solutions to customers. This pivot propelled Oddity Tech onto the global stage, culminating in its successful IPO on the Nasdaq last July, valuing the company at $2 billion. Today, Oddity Tech commands a market value of approximately $2.6 billion, underscoring its remarkable resurgence and market relevance.

Investor Activity and Strategic Sales

As Oddity Tech continues its ascent, investor interest remains robust, evidenced by the recent sale offer within the L Catterton fund, affiliated with luxury brand company Louis Vuitton. The fund intends to sell 4 million shares, valued at $184 million, with an option for additional shares, potentially increasing the sale to approximately $212 million. This divestment represents up to 35% of L Catterton’s current holding in Oddity Tech, securing significant returns on its investment.

For L Catterton, this marks another profitable exit, further solidifying its position as a savvy investor in Oddity Tech’s growth story. Over the years, L Catterton has realized substantial gains from its investment, underscoring Oddity Tech’s value proposition and market potential.

Financial Performance and Future Outlook

Amidst investor transactions, Oddity Tech continues to deliver impressive financial results. In 2023, the company reported a 57% revenue growth to $509 million, accompanied by a 169% increase in net profit and a robust adjusted EBITDA of $107 million. Looking ahead, Oddity Tech anticipates sustained growth in 2024, forecasting revenues of $620-630 million and an adjusted EBITDA of $136-140 million. These projections reflect the company’s resilience and ability to navigate evolving market dynamics.

Key underwriters in L Catterton’s current share sale include reputable institutions such as Goldman Sachs, JP Morgan, and Morgan Stanley, underscoring market confidence in Oddity Tech’s trajectory.

In summary, Auditi Tech’s journey from a failed makeup chain to a technology powerhouse is a testament to entrepreneurial vision and resilience. As the company continues to innovate and expand its market presence, investor interest remains robust, positioning Oddity Tech for sustained growth and success in the dynamic beauty and wellness industry.

Main article image credit: Oddity IPO (Nasdaq, Inc. / Vanja Savic)