Quip Raises $100M: What's Next for the Oral Health Startup?

Quip Secures $100 Million to Expand Oral Care Platform

Quip, a company dedicated to revolutionizing both individual and professional oral care, has received a significant $100 million investment. This new capital will empower the New York-based firm to further its mission and broaden its reach.

Series B Funding and Company Growth

This latest funding round, designated as a Series B and led by Cowen Sustainable Investments (CSI), follows Quip achieving profitability in April 2020. It brings the company’s total funding to over $160 million since its inception in 2015.

The company previously announced a $40 million raise in 2018. Quip initially gained attention with a presentation at TechCrunch Disrupt NY’s Startup Alley in 2015, showcasing its innovative approach to oral hygiene.

Expanding Beyond Toothbrushes

Initially recognized for its subscription-based toothbrush replacement service, Quip has progressively broadened its offerings within the $435 billion global oral healthcare market.

The company now provides a comprehensive range of products, including flossers, mouthwash, gum, smart electric toothbrushes, and, most recently, a virtual orthodontist-supported clear aligner service launched in April.

Strategic Vision and Customer Focus

According to co-founder and CEO Simon Enever, Quip’s overarching goal is to “establish a durable global enterprise within the oral care sector, and maintaining appropriate business scaling is crucial.” The company is prioritizing growth, innovation, and fostering a strong community among its more than 7.5 million customers across 100 countries.

Enever explained that the timing and substantial amount of this funding round were carefully considered. The intention was to demonstrate the strength of Quip’s profitable core business, alongside the integration of its oral care app and services like the newly introduced clear aligner.

A Changing Landscape in Oral Care

Six years ago, when Quip launched, the oral care startup ecosystem was considerably less developed, with limited investment in the field. This realization was a key motivator for Enever to establish the company, stemming from a dental visit where he observed the lack of innovation in the industry.

Since then, the landscape has evolved, with an increase in startups focused on dental care and investment flowing into both personal care and professional areas, particularly orthodontics and appointment scheduling – areas Quip is actively pursuing.

Future Plans and Platform Expansion

The new funding will facilitate the scaling of Quip’s personal care platform, currently serving over 7.5 million users. It will also enable the company to expand its network of over 50,000 dental professionals and venture into new product categories.

Furthermore, Quip anticipates exceeding 1 million app users by 2022. New features will be added to enhance the app’s capabilities in tracking oral habits, providing personalized coaching, and monitoring overall health.

Team Growth and Retail Expansion

Members will be able to accumulate points for improving their oral health practices and redeem them for products and discounts from Quip and its partners.

Enever also announced plans to double Quip’s workforce, currently at 200 employees located in New York and Salt Lake City, by the end of 2022.

“Our incredibly dedicated team has been instrumental in our success, and we are excited to expand and provide them with additional resources to reach new heights,” he stated. “Their accomplishments over the past few years, including launching four new product lines, securing placement in Walmart, and achieving profitability, have been truly remarkable, even amidst the challenges of the pandemic.”

The company reports a retail sales increase of over 100% compared to the previous year, with products now available in over 10,000 retail locations, including Target and Walmart.

Sustainability and Investment Alignment

Artem Mariychin, managing director at CSI, will join Quip’s board as part of the investment. CSI, focused on environmental sustainability, seeks companies with a positive environmental impact, such as reducing waste – a key factor in their attraction to Quip.

Quip estimates that over 100 million single-use plastic components have been diverted from landfills through its paper packaging and product recycling program. The company aims to reduce or divert over 1 million pounds of plastic within the next 12 months.

Unique Value Proposition

Mariychin also highlighted Quip’s growth trajectory, capital efficiency, and customer-centric approach as unique attributes within the oral care industry.

“Quip offers high-quality products at accessible prices, effectively addressing consumer needs and pain points,” he noted. “Simon’s initial focus on improving brushing habits – currently, only 50% of people brush twice daily – led to the expansion into floss picks and mouthwash. The impressive aspect is the increasing number of subscribers purchasing additional products. Quip’s expansion into areas like aligners is atypical for e-commerce businesses.”