5Y News | Aromatherapy skincare brand Zhuben closes two rounds totaling $50 million in funding

五源资本·March 8, 2021

A holistic wellness brand that embraces the philosophy of "less is more."

Aromatherapy skincare brand Zhuben recently completed two consecutive funding rounds — a Series A (first round) and a Series B — totaling $50 million. The Series A was led by Yuanjing Capital, with 5Y Capital and Qianyue Capital participating; the Series B was led by YuanSheng Capital, with Yuanjing Capital and 5Y Capital following. Qianyue Capital served as the exclusive financial advisor. The proceeds will be used for product R&D, supply chain capital reserves, brand building, and team expansion.

Yuan Ye, Partner at 5Y Capital, said: "The times give each of us more and more roles to play, and life asks us to put on more layers of adornment. We believe that only by shedding those layers, by letting go of exhaustion, can we truly enjoy the freedom to pursue our dreams and find the resolve to build them. We deeply identify with Zhuben's values and admire the team's focus on product and users, as well as their profound insights. Zhuben's journey has only just begun, and we look forward to seeing it grow into an important spiritual brand that accompanies contemporary women throughout their lives."

Liu Qianfei

Founder, Zhuben

What's been the hardest thing since you started your company? And what's been the most rewarding?

Liu Qianfei: The hardest part was the lonely, persistent stretch before Zhuben found its market breakthrough. From 2016 to 2018 — three long years — the market wasn't enthusiastic about cleansing oil as a category. Educating the market and popularizing the value of aromatherapy for physical and mental well-being was incredibly difficult. It takes time for a niche domestic skincare brand to earn users' trust. Meanwhile, the traditional ODM model in the supply chain couldn't support our exacting demands for product experience, let alone our goal of international quality at an extremely affordable price. When I refused to compromise, forcing myself to develop products independently and control an international supply chain, pouring in all my savings, time, and energy — only to be rejected by the world, even starting to doubt myself. That was the hardest time.

The most rewarding thing is that after all that persistence against the wind was finally seen by users, it reinforced my belief that integrating knowledge and action is right. Our obsessive work on critical emulsification technology transformed into a reputation for being refreshing yet nourishing; countless users fell in love with cleansing oil because of it. The groundwork we laid in controlling our supply chain and R&D gave us the ability to use luxurious natural essential oil formulations, which became the "one drop, never forget" user experience that moves people. The portable figure-eight snap closure, the spa-at-home healing kit experience... every moment of thoughtful work really can bring beautiful changes to countless users' lives. Every time I think of this, I feel that continuing to work hard is deeply meaningful.

What's been the biggest change since you started your company?

Liu Qianfei: I see things and people more dialectically now.

With matters, when I make mistakes or encounter setbacks, I drop the emotion and observe the causes objectively. I treat every mistake as an inevitability born of historical limitations. Identify the problem, seek improvement, and don't allow the same mistake twice. As long as I don't stop moving, every fall becomes an opportunity for rebirth. This way, my mindset has grown stronger than before.

With people, I've moved from being highly demanding of others in the past to realizing that everyone's weaknesses and strengths are intertwined — including my own. There are no wrong people, only wrong roles and expectations. Seeing people more dialectically reduces emotional interference in judgment and helps find solutions faster. I'm still working on this.

What common sense or principles have become increasingly important to you?

Liu Qianfei: Trusting my inner intuition has become more and more important.

Women are more prone to self-doubt than men — listening to many opinions, applying extensive rational analysis. But looking back on these years of entrepreneurship, the most critical correct decisions ultimately came from inner answers, even when I might have been in the minority at the time. Intuition sometimes precedes your rational judgment; use rationality to verify intuition and avoid risks.

David Wu

Investment Manager, 5Y Capital

Why did you invest in Zhuben?

David Wu: Beauty and skincare is an intensely competitive market, and Chinese consumers are growing ever more discerning. This market needs products that truly stick to their original vision and uphold their principles to serve them.

Before Zhuben's sales numbers took off, there were years of patient refinement and accumulation. This obsession with product is a very distinctive characteristic of the team, and we believe it's also what will power this brand to go further.

Zhuben has also invested considerable energy in building brand strength. In today's fast-paced lifestyle, an Eastern healing brand about "doing less" — we look forward to it healing more people.

What has most impressed you about the Zhuben team and founder since you first met?

David Wu: 5Y was among the earliest investors Zhuben approached. To be honest, Qianfei wasn't very familiar with pitch deck content back then, but once she started talking about product and brand philosophy, she couldn't stop.

Later, we had one meeting scheduled at 5Y's office. After we finished, I walked her out. While waiting for her car, we got to talking about several new products Zhuben was planning to launch, and Qianfei crouched down with me on the curb outside 5Y's door, trying samples one by one. Talking about each product's texture, fragrance, core ingredients — you could feel the genuine love and pride coming from her heart.

When someone treats something as their lifetime career, we have to respect that conviction and courage.

In your view, what's the key for emerging consumer brands to break through?

David Wu: I'm still constantly learning and exploring when it comes to emerging consumer brands today. If I have one small obsession, it's that I admire entrepreneurs who have tremendous passion for product, maintain constant reverence for users, and stay humble toward the market.

No matter how distribution channels and traffic dividends shift, good products will always speak for themselves.

Zhuben was founded in 2016, spending its first two years building an in-house R&D system and integrating its supply chain. Products officially launched on Taobao's ecosystem in 2018. It currently has about 10 SKUs, priced above 100 RMB. In 2020, Zhuben's total GMV across all channels exceeded 200 million RMB, up 450% from 2019, with over 80% of revenue coming from cleansing oil. In less than two years, the cleansing oil single product has sold over 3 million bottles, reaching more than 2.1 million users. Zhuben's 2021 target is to maintain 2020's growth rate, achieving 400%-500% growth.

Founder Liu Qianfei graduated from Fudan University with a degree in financial management and spent a year as an exchange student at UC Davis. She was previously partner and CFO at Matcha Beauty, and during her time at Milestone Capital focused on the beauty and personal care track, leading the $30 million Series B in Liren Lizhuang. In 2016, she spent half a year working with Red Earth's earliest founder, Steven, to develop products and build global supply chain resources.

Cleansing oil was Zhuben's first hit product and the first touchpoint through which many users discovered the brand. The common market knock against cleansing oils was that incomplete emulsification could clog pores, while products with strong cleansing power might damage the skin barrier. Zhuben developed patented "critical emulsification technology," using pure vegetable oils, plant essential oils, and emulsifiers in its formulation to achieve thorough emulsification, ensuring cleansing power while protecting the skin barrier.

The Zhuben team believes its greatest advantage lies in independent R&D and supply chain control, without relying on ODM development or procurement. The team visited raw material suppliers across multiple countries, establishing direct sourcing relationships with suppliers from Bulgaria, the United States, Australia, and other regions — ensuring raw material quality while reducing markup. Zhuben eliminated the 200%-300% R&D markup rate under the ODM model. The original R&D team was based in Shanghai; a new R&D center was established in Japan at the end of 2020.

The team noted that Zhuben hadn't found the right moment to build its brand until 2019, when it caught two tailwinds — livestreaming and optimization of the e-commerce distribution system. Zhuben used top livestreamers like Li Jiaqi to attract consumers through live commerce.

According to data provided by Zhuben, in 2019 the brand collaborated with Li Jiaqi 34 times, once selling 50,000 bottles of cleansing oil in a single minute. In early 2019, the E-Commerce Law was enacted, clearing gray-market goods from international supply chains. Large numbers of Taobao channel merchants needed to optimize and standardize their supply chains while seeking out quality domestic brands. Zhuben seized this opportunity,下沉到 over 100 stores, helping KOLs with livestreaming, crowdfunding, training, and operations — educating KOLs on aromatherapy healing and skin barrier protection — to complete its distribution network setup.

Liu Qianfei defines 2021 as Zhuben's brand foundation year, with plans to complete four product lines this year: cleansing, skincare, personal care, and aromatherapy. Integrating aromatherapy healing factors into essential oil blends and adding them across all product lines is Zhuben's distinctive product feature.

Liu Qianfei said that during her time in finance, she experienced the high pressure of first-tier cities. Aromatherapy was her daily way to relieve stress, but spa visits were expensive. When she moved into beauty industry investing, she discovered the industry's extreme markup rates — many international luxury brands mark up 10x or even 20x — so she hoped to build a brand that cuts out middle layers through R&D, delivering aromatherapy's benefits through skincare products. Liu Qianfei believes aromatherapy won't be limited to skincare and can expand into lifestyle, with more possibilities for extension in the future.

5Y Capital (formerly Morningside Venture Capital) currently manages approximately $3 billion across USD and RMB dual-currency funds. We believe that if the you whom others see as crazy begins to be believed in, the world becomes a better place.

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