Vengo Labs, a New York-based digital vending machines company, has raised $7 million in Series B funding led by Arcade Beauty — which is the largest manufacturer of beauty samples in the world. With this funding round, Vengo Labs will be scaling its presence in colleges and gyms. And it will begin testing new applications starting with an initial focus on the beauty industry.
SPINS, Bill Apfelbaum, Grace Beauty Capital, and Kensington Capital Ventures also participated in this round of funding. Some of Vengo Labs’ previous investors include Tony Hsieh, Brad Feld, Nas, Gary Vaynerchuk, David Tisch, and Joanne Wilson.
“Vengo is always thinking about creating a frictionless experience for consumers,” said Vengo Labs CEO and co-founder Brian Shimmerlik in a statement. “Vengo’s physical-plus-digital platform enables brands to create impactful, positive experiences for consumers that jump out of the digital ecosystem and into the real world to provide instant gratification. Marketing can no longer just interrupt the consumer, it needs to provide real value.”
Vengo Labs’ digital kiosks were designed to serve consumer packaged goods and advertisements, which combines the convenience of online shopping with the instant access to products offered by traditional retailers. There are now more than 1,000 Vengo digital kiosks located at college campuses, hotels, gyms, and other locations. And with Arcade Beauty and SPINS as strategic partners, Vengo Labs will be able to expand its reach. Specifically, Vengo is planning to expand its network four times this year in order to reach more than 100 million consumers every month.
“As the retail and beauty landscape changes rapidly, it is increasingly important to create alternative distribution channels,” added Arcade Beauty president and CEO Peter Lennox. “Bringing beauty products to the places consumers need them most is a natural fit for Arcade Beauty. We’re looking forward to supporting Vengo’s efforts in the beauty industry and growing Vengo’s presence ‘in the wild.”
If Vengo Labs sounds familiar to you, then you may remember seeing the company receiving a $2 million deal on ABC’s Shark Tank from Kevin O’Leary and Lori Greiner. Founded by Brian Shimmerlik and Steven Bofill, Vengo Labs raised $5 million across its previous funding rounds so this brings the company’s total to $12 million.
