ECC Group, Egypt’s leading beauty and personal care manufacturer, has acquired a majority stake in Source Beauty, Egypt’s foremost beauty startup. The deal provides a significant opportunity for Source Beauty’s clients to benefit from enhanced services such as new product innovation and manufacturing know-how, among other things. In the country, ECC provides 360-degree services in the manufacturing and distribution of scientifically proven innovative cosmetic products.
Lydia Schoonderbeek founded Source Beauty in 2018 as a beauty product one-stop shop. The startup has 60,000 users and over 85 local and international beauty brands. This marketplace offers customers an affordable and readily available solution for beauty products in the country, as well as exposure to products sourced from the best raw materials by female start-ups. It also provides the most incredible interactive shop window for established and emerging brands.
The founder and CEO of Source Beauty will continue in her role as CEO while also serving as Chief Creative Officer of ECC.
What the Stakeholders are saying
According to Schoonderbeek “The funds will reinforce an accelerated digital and physical marketing strategy to reach a broader customer base, enhancing customer retention and brand visibility as well as expanding the team. This strategic investment by ECC is a game changer for Source Beauty and we’re all hugely excited about the future. Since Source Beauty’s inception, I have been determined to change the beauty space in Egypt to truly address the needs of the Egyptian consumer”.
“We will continue to develop and work towards becoming Egypt’s largest multi-brand online beauty retailer. We are confident that this partnership with ECC will get us there.” Lydia added.
Dr. Mohamed Salah, Co-Founder and CEO of ECC, said “We are excited about Source Beauty’s role as part of the group and are equally excited about working with Lydia and her team to continue their journey in a market that is price sensitive and seeks sustainability.”
Also commenting, El Hamail, Co-Founder and Vice-Chairman of ECC added, “Source Beauty’s brand and Company values make it a great fit for us. We are delighted to back Lydia, and believe that her continued role at Source Beauty as well as her new role at ECC complements the new chapter we are building for the group.”
Van Campen Liem advised Source Beauty while Al-Tamimi and HVK Stevens served as ECC’s local and international counsel.
According to data from Statista the Egyptian beauty industry is expected to grow at an exponential rate, reaching a market volume of $187.70 million by 2025. As a result, there is an urgent need to promote inclusivity, sustainability, availability, and affordability for the average Egyptian beauty consumer and this deal is a smart move that will accelerate the industry’s growth.