Interactive fashion and style community StyleCaster announced that is has acquired facial recognition and beauty start-up Daily Makeover.
Financial terms of the deal were not disclosed, but StyleCaster Chief Executive Ari Goldberg told Inc. that the company will double its revenue and add 15 employees to its 25-person team as a result of the acquisition.
“We will be operating as one integrated team with (Daily Makeover’s) technology licensing team operating as its own business unit,” Goldberg said.
To fund the expansion, StyleCaster also announced that it has raised $2 million from investor Bo Peabody, managing partner at Village Ventures, who has previously invested in media start-ups including Babble and Everyday Health.
Daily Makeover, which allows women to upload photos and apply makeup, hairstyles and accessories virtually, will bring more than 30 million reported “makeovers” per month to StyleCaster, which Goldberg has previously described to Inc. as “Facebook meets Conde Nast.” With the acquisition, StyleCaster said its traffic will triple to more than 5.5 million unique visitors per month.
In line with the Conde Nast theme, Goldberg said StyleCaster is still open to additional acquisition opportunities to expand its media holdings.
“The cost of starting a company is down so much that the number of companies has grown exponentially,” said Goldberg. “Many start-ups in the digital fashion space are formulated like a business but actually feel like part of a larger entity.”
“We explored a number of opportunities in lieu of this deal,” Goldberg added. “(Daily Makeover) is the first of many acquisitions.”