Vengo Labs Reports Raising $7M In Latest Series B Funding Round

Posted On: 1/16/2019

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NEW YORK CITY -- Vengo Labs has announced the completion of a $7 million Series B funding round. The round was led by Arcade Beauty, an Oaktree Capital portfolio company said to be the largest manufacturer of beauty samples in the world.

The funds will be used to scale Vengo's presence in colleges and gyms and to begin testing new applications, with an initial focus on the beauty industry.

Also participating in the round are Spins, Bill Apfelbaum, Grace Beauty Capital and Kensington Capital Ventures.

"As the retail and beauty landscape changes rapidly, it is increasingly important to create alternative distribution channels," said Arcade Beauty president and chief executive Peter Lennox. "Bringing beauty products to the places consumers need them most is a natural fit for Arcade Beauty. We're looking forward to supporting Vengo's efforts in the beauty industry and growing Vengo's presence 'in the wild.'"

Vengo Labs' digital kiosks deliver both consumer packaged goods and advertisements, marrying the convenience of online shopping with the fast access to products offered by traditional brick-and-mortar retail outlets. More than 1,000 Vengo digital kiosks presently are located around college campuses, gyms, hotels, and other public sites. This hybrid retail and marketing tech solution is designed to create targeted, effective new retail, sampling and media opportunities for brands.

"Vengo is always thinking about creating a frictionless experience for consumers," said Vengo Labs chief executive and cofounder Brian Shimmerlik. "Vengo's physical-plus-digital platform enables brands to create impactful, positive experiences for consumers that jump out of the digital ecosystem and into the real world to provide instant gratification. Marketing can no longer just interrupt the consumer -- it needs to provide real value."

Vengo explained that bringing in Arcade Beauty and Spins as strategic partners marks a milestone in the company's effort to expand its reach, supported by deep expertise in the consumer packaged goods industry. Vengo plans to quadruple its network in 2019 to reach more than 100 million consumers each month.

Vengo Labs was first introduced to consumers via its $2 million deal on ABC's Shark Tank from investors Kevin O'Leary and Lori Greiner. Cofounders Brian Shimmerlik and Steven Bofill raised $5 million in previous funding rounds.

This additional financing brings the company's total funding to $12 million.

Vengo is positioned as a leading "retail tech" company, providing digital vending machines that engage consumers to drive trial of new products.