Quip, an oral health care startup that has boomed with the proliferation of startups banking on the so-called subscription economy, is only getting bigger now that it has raised $40 million more in venture capital.
A combination of equity and debt financing while led by existing investor Sherpa Capital, the latest funding round brings Quip’s total funding to over $60 million.
Announced Tuesday, the funding round follows Quip’s expansion in October from its online-only subscription model for delivering electric toothbrush replacement heads and toothpaste to in-store placement at Target (TGT). Quip joins a number of other personal care subscription services that have made the jump from online to brick-and-mortar, including Harry’s razors and grooming products as well as Casper mattresses. According to Quip, the toothbrush company’s launch was “one of the most successful direct-to-customer launches” that Target has seen to-date.
Founded in 2015 and based in Brooklyn, Quip previously hinted at ambitions of being much more than just a toothbrush subscription and replacement brand earlier this year with its acquisition of dental insurance company Afora in May. The startup’s first major purchase, the deal lined Quip up to have access to a network of more than 25,000 dental professionals nationwide. The two brands haven’t entirely merged yet, but Quip noted in Tuesday’s funding announcement that it is on a mission to offer simpler and affordable alternatives to current dental insurance plans on the market.
For now, Quip said its latest line of financing will be put toward growing its subscriber base, notably through an offline distribution program to recruit more dental providers to its network while dangling Quip products and services as a means to attract and retain new patients.
Finally, just this weekend, Quip also launched a limited edition, all-black toothbrush just in time for the holidays. Retailing for $55, proceeds from every all-black Quip sold will help provide oral health education and dental care access to disadvantaged families in collaboration with the ADA Foundation.