L'Oréal invests in clean beauty brand Ami Colé

With the brand fully entering independent Sephora stores in the US and successfully breaking into the Canadian market, **clean beauty brand Ami Colé** has received investment from L'Oréal. The brand plans to use the undisclosed amount of capital to expand its team and retail operations. She attended the Cosmoprof conference, and through her persistent efforts, she finally contacted an Italian formulator who had previously led product development for NARS and Fenty Beauty. Eight months later, she received the precious samples. However, by 2021, under the shadow of the pandemic, Diarrha finally launched the cosmetics line. This line was specifically developed for users with colored skin and named after her mother. The brand first launched on its website with three iconic products priced from $19 to $32, including foundation products, a lip treatment oil, and a highlighter product.

Its promotional campaign prominently features beautiful women of different skin tones, body shapes, and features, aiming to convey the brand's respect and admiration for diverse beauty.

Since its debut, its foundation products, known for compatibility and a wide range of shades, have repeatedly sold out, becoming the most popular products in the brand's store. Within 45 days of the brand's market launch, product sales exceeded the total sales projected for the early quarter. To honor Diarrha's Senegalese-American heritage, this tree is very common in Senegal and has survived for thousands of years. "In folklore, the baobab tree holds significant status; it is called the tree of life, and no one would cut it down," she explained. "Its fruit is rich in vitamin C, potassium, and calcium, and contains nourishing and moisturizing ingredients from the seed oil. In my culture, the baobab tree has a rich history, so including it in our products is significant to me." By the end of the year, Diarrha received multiple awards: the Women's Wear Daily Newcomer of the Year Award, Glossy's Disruptor of the Year Award, Refinery29's Beauty Innovator Award, and the brand's mascara was also selected as "Allure Editor's Pick." Gaining favor from numerous investors, Ami Colé became a leader in the early lip oil craze, In 2021, Diarrha successfully raised over $1 million in seed funding for Ami Colé, gaining support from numerous investors. This included co-founders of Clique Brands, editor-in-chief of The Cut, Goop, Cuyana, Versed, and venture investors for Thrive Market and 11 Honoré, Greycroft, HBFIT founder, Chord Commerce co-founder and former Glossier president, and strong supporters such as early investment funds Debut Capital supporting Black, Latinx, and Indigenous founders, and Net-a-Porter's founder.

Brand Ami Colé is currently being sold at Sephora, providing an opportunity to enter a larger market. "For us, the Canadian market has been hugely successful. In just the first week, our sales surpassed the first month's expectations," Diarrha said in an interview with WWD. She mentioned that the brand is evolving from an emerging force to a mainstay in the beauty industry, and this rapid growth is one of the main reasons L’Oréal decided to invest.

Carol Hamilton, President of L’Oréal America's Acquisition and Business Development Group, stated: "We have a responsibility to support representative brands that will drive market growth in the next 10 to 20 years. We are committed to discovering the next brand with strategic potential, not only out of love for the brand but also by being involved throughout its innovation and creation." Carol added that the core of this deal is because Diarrha is an outstanding founder, and it’s a learning and reference opportunity for L’Oréal as well.

She said: "We are excited to invest in brands and technologies destined to change the future of the beauty industry; this is also a good way to test consumer trends and purchasing preferences." In addition, she pointed out that Ami Colé’s choice in color shades is an area L’Oréal can learn from in the future. Diarrha has shown her unique expertise in color mixing and enriching shades in formulations.

It is noteworthy that this is the first time L’Oréal has invested in a brand founded by and focused on Black consumers. "Current market capital doesn't really pursue investments in brands by female and Black founders, and this gives us a different opportunity from other investors," Carol said. "We are very keen to support communities of color, which is crucial in the beauty industry." This drive is also part of Diarrha's future development strategy.

Collaboration with beauty blogger Aysha Harun has brought impressive sales results for Ami Colé, as they jointly released a limited edition shade of the brand's lip oil. "This is our first large-scale collaboration with a blogger, testing how to effectively reach the target audience and promoting new marketing methods to enhance brand awareness." Diarrha emphasized: "As an emerging brand, we not only have to ensure our products meet market demands but also increase brand awareness, which is an important strategic opportunity."

Ami Colé is about to achieve its $3.5 million sales target. Diarrha plans to continue surpassing this number through team expansion, increasing inventory, and expanding the marketing budget. "This will help us attract and retain the talent we need while strengthening our marketing capabilities. We also need to ensure effective conversion on the Sephora website and explore paths to win in the real market."