Flo, the #1 OB-GYN-recommended app for period and cycle tracking, announced it closed $50M in a Series B financing, bringing the total capital raised to $65 million and company valuation to $800M. By the end of 2021, Flo aims to reach $100M Annual Run Rate.
Once considered taboo, today the period tracking market is highly saturated
With a community of over 200 million users from all corners of the world, Flo has gained significant traction. Flo’s business model is purely subscription-based and has experienced hyper-growth in the last twelve months, increasing its active app subscriber base four times, reaching 1.5M in August 2021. The company also recently introduced Flo as a benefit to US employers to better support women in the workplace with the resources they need to thrive physically and mentally.
Although it’s fantastic that we’re finally beginning to see brands addressing specific female health topics that are considered taboo such as menstrual; the space is quickly becoming saturated. Flo is now one amongst a long list of cycle tracking brands including Clue, Eve by Glow, Spot On, Ovia, Natural Cycles, Period Tracker, Life, Magin Girl, Cycles, My Calendar and the list goes on.
After decades of stagnation, we are seeing more and more ‘vagina disruption’
However, period tracking is just one avenue of “vagina disruption” currently taking place in the market. The global feminine hygiene category is forecasted to expand at a CAGR of 6.8%, and will reach a value of $52B by 2023, up from $37.4B in 2018.
By and large, the category hasn’t changed all that much in the last few decades. Take the modern tampon, for example, which has been on the market since the mid-1930s. In that time the biggest product innovation was moving from a cardboard to plastic applicator. Thankfully, this is about to change.
Consumer demand is driving the rise of alternatives to traditional menstrual products
Today, period innovation is on the rise. Companies are focusing on expanding their options to meet growing consumer demand for alternatives to traditional feminine hygiene products. Flushable pads have hit the market, with UK’s Planera and USA’s SHERO whose biodegradable pads are made out of a polymer derived from algae. Period pants pioneers, Thinx, closed 2020 with nearly $100M in annual revenue. Flex is rapidly growing in popularity with their novel disk that collects period blood rather than absorbing it. Also, the organic menstrual product space is becoming saturated with popular brands like Rael, Here We Flo, Public Goods, and This is L. More broadly, firms like Flo Vitamins and Love Wellness have seen success with PMS supplements.
Brands like Lola, Cora and Athena Club have paved the way for Direct To Consumer subscription models for tampons and pads. Though not drastically more cost effective, subscriptions offer a highly convenient and customizable solution for menstruators, not to mention, the peace of mind of a regular supply of menstrual care.
Now the category is venturing into product packages that cater for our entire lifestyle surrounding our monthly cycles; from basic packages like L. to the more luxurious offering at The Period Store which sells customisable boxes from brands ranging from Kotex and Tampax to more obscure brands like Sister Bliss and Yejimiin. Users can choose from a wide range of products including everything from tea, gourmet treats, cramp meds wipes, heat packs, candles, nail decals, and herbal tinctures. This level of pampering might almost make you look forward to your period. Almost.
Head over to our blog page to read more ASV Insights. Next time, ASV Insights discusses the fertility trailblazer, Kindbody.
