Function of Beauty
DTC brand selling custom quiz-based shampoo, conditioner, and skincare.
On the record
Checkpoint: Walmart sell-through results and wholesale renewal terms for its 1,800-store rollout
The call
A once-unicorn quiz brand now sells $9.97 bottles at Walmart while bigger companies copy its personalization pitch for free.
Function of Beauty makes personalized shampoo and skincare by having customers take a quiz, then mixing a formula just for them. The company's main advantage, using a quiz and algorithm to customize products, is no longer unique: Sephora, Ulta, Walmart, and other big beauty stores now offer the same kind of AI-powered personalization, and they can do it just as well. Function of Beauty has also moved away from selling expensive bottles direct to customers (at $25 to $33 each) and now sells cheap bottles in Walmart for $9.97, which means less money per bottle and less control over how customers see the brand. The one thing that could turn this around is if the new CEO can prove that positioning the products as a clinical health choice, rather than just a trendy customization gimmick, makes customers come back and buy again and again.
Why
01
AI pressure: Sephora, Ulta, and Prose AI-driven personalization tools. AI quiz and chatbot tools now match ingredients to hair at big retailers, copying the one trick Function of Beauty built its brand on. Could AI do the core job? Yes, likely.
02
Bigger players: L'Oréal, P&G, Unilever, Walmart. These companies already ship personalization at scale and can sell customized formulas cheaper through stores Function of Beauty depends on for shelf space. Could a giant copy it? Yes, easily.
03
What protects it. Existing Walmart distribution deal and years of formulation data on customer hair and skin profiles.
What would change this call
Function of Beauty's Walmart sell-through and wholesale renewal terms reported for Q1-Q2 2027. Weak sell-through or renegotiated terms would confirm cash-squeeze and retail underperformance.
Any L'Oréal, Unilever, or other strategic acquisition announcement involving Function of Beauty within 12 months. An acquisition at a defensible multiple would signal the company found an exit rather than continued decline.
Measurable repeat-purchase rate data tied to CEO Monica Belsito's clinical repositioning strategy. Improved repeat rates would show the new differentiation strategy is gaining real customer traction.
Any L'Oréal, Unilever, or other strategic acquisition announcement involving Function of Beauty within 12 months. An acquisition at a defensible multiple would signal the company found an exit rather than continued decline.
Measurable repeat-purchase rate data tied to CEO Monica Belsito's clinical repositioning strategy. Improved repeat rates would show the new differentiation strategy is gaining real customer traction.
Key numbers
- Series B valued company near $1.1B
- No new funding round reported since 2020-2022
- Revenue estimates range from $12M to $84M
Named risks
- No new equity funding disclosed since December 2020, a six-year capital gap.
- Core quiz-based personalization is being commoditized by AI tools at Prose, Sephora, and Ulta.
- Shift from $25-33 DTC pricing to $9.97 Walmart wholesale SKUs signals margin compression.
- Revenue figures reported inconsistently across vendors ($12M to $84.4M), no audited financials public.
- Three CEOs in five years (Dossa, Papazian, Belsito) suggests leadership instability.
Rivals, as read in July 2026
| Rival | Direction | Evidence |
|---|---|---|
| Prose | gaining on | Uses AI matching 85+ factors, commoditizing FoB's quiz differentiation, cited 2026-03-16 |
| Sephora | contesting | Deployed AI beauty advisor chatbot replicating personalized-recommendation front end, 2026 |
| Ulta Beauty | gaining on | Reported double-digit ecommerce growth driven by AI personalization as of 2026-03-16 |
| Walmart and Target in-house beauty programs | contesting | Building 'Beauty Expert'/'Beauty Studio' programs competing for same shopper, Q1 2026 |
| L'Oreal | gaining on | Active 2025-2026 acquisition spree (Kering Beaute/Creed, ~4bn euro) expanding personalization scale, not toward FoB |
Questions people ask
- Is Function of Beauty profitable?
- No independently audited financials are public as of July 2026. Vendor revenue estimates conflict wildly, from $12.0M to $84.4M, and the company has raised no new capital since its December 2020 $150M Series B, suggesting financial strain rather than confirmed profitability.
- Who owns Function of Beauty?
- Function of Beauty is privately held and was majority employee-owned as of December 2020, when L Catterton took a strategic minority investment via a $150M Series B round that reportedly pushed valuation near $1.1B.
- Could AI replace Function of Beauty's personalization quiz?
- Its core quiz-to-formula model is commoditizing fast: competitor Prose already evaluates 85+ factors via AI, and Sephora's AI beauty advisor plus Ulta's AI-driven personalization drove reported double-digit ecommerce growth in 2026, per industry sources dated 2026-02-09 and 2026-03-16.
- Is Function of Beauty getting acquired or raising new funding?
- As of July 2026 there is no public record of a new equity round, IPO, or acquisition since the 2020 Series B. L'Oréal's 2025 to 2026 acquisition spree, including Kering Beaute and Creed for about 4bn euro announced 2026-03-17, did not name Function of Beauty as a target.
- Who is the CEO of Function of Beauty?
- Monica Belsito, former CMO of Sabra and founding CMO of Lola, became CEO on 2025-07-21, replacing Joe Papazian, who had himself replaced founder Zahir Dossa as CEO back in 2021, marking the brand's third CEO in five years.
- Is Function of Beauty sold at Walmart?
- Yes. As of April 2025, Function of Beauty expanded into over 1,800 Walmart stores with a 17-SKU core haircare lineup priced at $9.97, a sharp step down from its $24.99 to $32.99 direct-to-consumer pricing.
Timeline
- 2026-03-17L'Oreal announces Kering Beaute/Creed acquisition (~4bn euro); Function of Beauty not named as target
- 2025-07-21Monica Belsito named CEO, replacing Joe Papazian, with clinical/expert repositioning focus
- 2025-04-28Function of Beauty expands to 1,800+ Walmart stores with $9.97 core SKUs
- 2023Function of Beauty PRO line launches exclusively at Sephora
- 2022-03Function of Beauty acquires personalized skincare startup Atolla
- 2021Joe Papazian replaces founder Zahir Dossa as CEO
- 2020-12-02Series B: $150M from L Catterton, valuation reportedly reaches ~$1.1B
- 2017-06-29Series A: $9.5M led by GGV Capital at ~$110M valuation
- 2016First customized haircare products launch
- 2015Function of Beauty founded by Zahir Dossa, Joshua Maciejewski, Hien Nguyen
Revision history
23 July 2026
First assessed. Losing its protection. The text above is fixed as of this date and is not edited afterwards.
In the same band
Sources
- Function of Beauty - Overview, News & Similar companies (2026-07-06)
- How Much Did Function of Beauty Raise? Funding & Key Investors (2025-05-22)
- Function of Beauty Raises $150M From L Catterton (2020-12-02)
- Products, Competitors, Financials, Employees, Headquarters Locations (2026-03-04)
- An MIT graduate created a new kind of shampoo that's worth $110 million (2017-06-29)
- Function of Beauty 2026 Company Profile: Valuation, Funding & Investors
- Function of Beauty IPO: Investment Opportunities & Pre-IPO Valuations (2023-11-14)
- Kering and L'Oréal forge an alliance in beauty and wellness (2026-03-17)
- Function of Beauty names new CEO (2025-07-21)
- Analysis & Top Suppliers (2026-04-09)
- Function of Beauty expands to Walmart (2025-04-28)
- About Us