![]() ![]() Subscription-type models feature prominently, and the biggest winners not only sell a great product but aim to own the entire category, by engaging the customer in a technology ecosystem where everything is connected. Yet, this strategy did attract a sustainable investments fund, which led the current round. So is their Pez-like chewing gum dispenser, which perhaps stretches the definition of a tech company to its maximum width. The reusable dental floss system comes in five on-trend colours and the sleek mouthwash dispenser is refillable. Sustainability is also front and centre and Quip trades on its eco-friendly credentials. Whatever the truth, the company refocused just in time to successfully navigate the pandemic. The business has even managed to reach profitability, but this strong growth created some issues that Quip couldn’t, dare I say it, just brush away.Įarly in 2020 the start-up fired around 10 per cent of its workforce, with anonymous insiders blaming a series of missteps by overly ambitious management. The range also expanded to include a metallic smart toothbrush, and ancillary products like vegan, SLS-free dental floss, which sold more than two million units at Christmas 2019 alone. Strong growth is likely to have continued in 2021. The start-up’s toothbrush sales have grown quickly and reached four million last year. They’re also stocked in-store at US chain Target, and a recent deal added Walmart. Their initial plastic toothbrushes are sold online and retail for $US25. Quip in fact offers an actual subscription service that delivers replacement heads every three months, and more than one million customers have joined.ĭollar Shave Club took a similar approach with its disposable razor business, and after just five years was acquired by Unilever for $US1 billion.Ī design-led company, Quip’s products look more Apple than Oral B. Selling directly to online customers delivers bigger profit margins and the model quickly resembles subscription economics. The model treads a well-worn path involving a cheap, one-off initial purchase followed by the continuous replacement of consumables. Quip was founded by a young, English industrial designer inspired to create a high-tech yet affordable electric toothbrush. Toothbrushes are the latest item to get the tech treatment, with some dental tech companies achieving gleaming valuations. But it does highlight how the relentless creep of technology is driving the reinvention of mundane, quotidian activities, which rapidly become the basis for high-growth start-ups. This deal could be mistaken for venture capital satire. But the internet has turned the tooth into a tech play, and at the end of last month electric toothbrush start-up Quip raised another $US100 million ($136 million) to execute its plans for global dental domination. ![]() For most of its 5000-year history, no one imagined that a humble toothbrush could be worth $US100 million. ![]()
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