TL;DR:
- Data platform Oddity has acquired biotech startup Revela for $76 million, aiming to leverage AI technology in the beauty industry.
- An additional $25 million investment will fund Oddity Labs, a biotechnology center.
- The integration of AI-based molecule discovery will boost research and development for cosmetics and beauty products.
- Revela’s AI tool will assist in identifying and testing new molecules, speeding up the discovery process.
- Lindsay Drucker Mann, Oddity CFO, believes the beauty industry has fallen behind in innovation and ingredient development.
- Other technologies like synthetic biology and robotics will also drive progress in the beauty industry.
- The total investment of over $100 million demonstrates Oddity’s commitment to revolutionizing the beauty and wellness landscape.
Main AI News:
The integration of artificial intelligence (AI) has permeated numerous sectors, ranging from technology to dining establishments, and the beauty industry is embracing this trend as well. One such company capitalizing on the potential of AI technology is Oddity, a data-driven beauty platform. In a significant move, the parent company of Il Makiage and SpoiledChild recently announced its acquisition of Revela, a biotech startup based in Boston that employs an AI-powered tool for ingredient exploration and research into new formulations.
This groundbreaking deal, valued at an impressive $76 million, marks Oddity’s most substantial acquisition to date. Moreover, the company has committed an additional $25 million investment toward the establishment of Oddity Labs, a pioneering biotechnology center.
“We are fully committed to pursuing this innovation, this time harnessing biotechnology to uncover the most captivating, effective ingredients for consumers,” expressed Oddity CFO Lindsay Drucker Mann during a Yahoo Finance Live interview. “The technology has already demonstrated its prowess in the pharmaceutical industry. Today, we are unleashing its potential to revolutionize the beauty and wellness landscape.”
With a total investment exceeding $100 million, the aim is to leverage AI-based molecule discovery, a practice commonly employed in pharmaceutical drug development, to drive advancements in cosmetics research and development, among other beauty products.
According to Oddity, Revela’s AI tool will play a crucial role in assisting researchers in identifying and testing novel molecules that can address customer pain points. Drucker Mann further elaborated that the tool will expedite the discovery process, which traditionally relies heavily on trial and error methods.
“The introduction of AI significantly enhances our capacity to explore a vast range of ingredients, expanding from thousands to billions and beyond, enabling us to pinpoint those most likely to elicit the desired response from the cellular level,” Drucker Mann explained. While the beauty category is currently experiencing a surge in popularity, she expressed her belief that the industry has lagged behind in terms of innovation and ingredient development.
“It’s an incredible category with immense growth potential,” she remarked. “However, the truth is that the industry has fallen behind the innovation curve in terms of product development and ingredient research. The majority of top-performing hair and skincare products on the market today consist of recycled and repackaged ingredients that have been around for decades.”
Drucker Mann emphasized that AI alone will not be the sole driver of progress in the beauty industry, citing other transformative technologies such as synthetic biology and robotics. “Several enabling technologies have reached a threshold level, enabling us to engineer solutions that were previously unimaginable,” she stated. “We have witnessed the existence of these solutions in the pharmaceutical realm, yet they remain untapped in the context of beauty and wellness.”
Conlcusion:
Oddity’s strategic acquisition of Revela and its significant investment in AI technology and biotechnology signify a transformative shift in the beauty industry. By leveraging AI-based molecule discovery and exploring new ingredients, Oddity aims to address customer pain points and accelerate research and development for cosmetics and beauty products.
This move highlights the industry’s recognition of the need for innovation and ingredient development to keep pace with evolving consumer demands. As AI, synthetic biology, and robotics converge, we can expect the beauty market to witness an era of unprecedented advancements, leading to enhanced product formulations, ingredient efficacy, and ultimately, heightened consumer satisfaction. Businesses operating in the beauty sector must embrace these emerging technologies to stay competitive and meet the evolving needs and expectations of their target market.
