Sexual wellness model Cake this week is increasing its product placement in some main retailers, together with new area in CVS shops, as it broadcasts $8 million in new Series A funding.
We final profiled Cake in April when its line of lubricants, condoms, toys and sexual hygiene merchandise made its debut in Target and took in $2.5 million in bridge financing. The firm now has 5 merchandise in retailer places as nicely as Amazon, Thrive Marketplace and UrbanOutfitters.com.
The firm grew 200% 12 months over 12 months between 2021 and 2022. Four of its merchandise are actually in CVS, together with Tush Cush, So-Low Lotion, Buzzy Butt and Stroker. Cake can be doubling its product SKUs in Walmart, going from 4 to 11 SKUs, the corporate mentioned.
The sexual wellness market is huge enterprise now, as a lot of the stigma round it has eroded in recent times. The market is predicted to achieve $125.1 billion by 2026, up from $67.4 million in 2019 and rising 12% yearly, in accordance with KBV Research.
As a outcome, Cake will not be alone in attracting enterprise capital. For instance, final week, Dame Products raised $7 million for its line of vibrators and serums. In 2020, Barcelona-based Emjoy raised $3 million for its “sex-positive subscription audio content material.”
Meanwhile, Silas Capital led Cake’s new funding, which supplies the corporate over $16 million in whole funding thus far. Silas was joined by its present buyers, together with Lerer Hippeau, Selva Ventures, Bullish and Finn Capital Partners.
The new funding will likely be targeted into continued retail enlargement and product innovation, Hunter Morris, co-founder and CEO of Cake, informed TheTremendously. The firm additionally introduced on Dollar Shave Club’s former Chief Innovation Officer Fadi Mourad to go up product innovation, and former SmartyPants government Christina Komen to guide retail gross sales.
“We function on a recurring theme of placing intercourse again in arm’s attain,” Morris mentioned. “Retail has been sort to us, and enlargement has been sooner than anticipated. As we get extra clear on the Cake target market, we’re determining the place they store and going to these locations. We can’t go into particulars now, however we can have a new, thrilling retailer that will likely be carrying Cake in 2022 and 2023.”