Fashion community Stylcaster is going even bigger with beauty. The New York-based startup on Wednesday announced that it has purchased Daily Makeover, a digital beauty and style site that gives users virtual makeovers.
With the acquisition, the company said it would double revenue and the size of its team, as well as triple its traffic. The new platform will also raise Stylecaster’s international presence, bringing it to 50 more countries, the company said.
In addition, the style-centric startup said it had raised $2 million in new funding, led by Bo Peabody, a venture partner with Greycroft Ventures and co-founder and managing partner of Village Ventures. The company said the round is still open and added that Stylecaster and Daily Makeover had both been profitable prior to the deal.
In recent months, the digital style and beauty space has seen increased activity, with beauty discovery service Birchbox’s first acquisition and makeup community Beautylish’s new foray into e-commerce.
Ari Goldberg, Stylecaster’s CEO and co-founder, said the current environment — which includes many style startups that are more like apps, not truly sustainable businesses — is ideal for mergers and acquisitions.
“We believe this deal makes us ripe for additional acquisitions, and we are aggressively analyzing opportunities to accelerate our growth even further,” he said. In the short term, he said the company plans to hire top-level executives and scale its sales team.
Given the amount of specific beauty products and clothing items shared and discussed on both sites, it seems like an e-commerce play could be a natural move for the company. Goldberg said they’re not disclosing any of their immediate strategies, but added, “Let’s say it’s definitely on our radar.”