Sexual wellness brand Cake this week expands its product placement in a number of major retailers, including new space in CVS stores, as it announces $8 million in new Series A financing.
We last profiled Cake in April, when its line of lubricants, condoms, toys and sexual hygiene products made its debut at Target, raising $2.5 million in bridge funding. The company now has five products in retail locations, as well as Amazon, Thrive Marketplace, and UrbanOutfitters.com.
The company grew 200% year over year between 2021 and 2022. Four of his products are now in CVS, including Tush Cush, So-Low Lotion, Buzzy Butt and Stroker. Cake is also doubling its product SKUs at Walmart, from four to 11 SKUs, the company said.
The sexual wellness market is now big business, as much of the stigma surrounding it has eroded in recent years. The market is expected to reach $125.1 billion in 2026, up from $67.4 million in 2019 and growing at 12% per year, according to KBV Research.
As a result, Cake is not alone in attracting venture capital. Last week, for example, Dame Products raised $7 million for its line of vibrators and serums. In 2020, Barcelona-based Emjoy raised $3 million for its “sex positive subscription audio content.”
Meanwhile, Silas Capital led Cake’s new investment, which gives the company more than $16 million in total funding to date. Silas was joined by its existing investors, including Lerer Hippeau, Selva Ventures, Bullish and Finn Capital Partners.
The new funding will focus on continued retail expansion and product innovation, Hunter Morris, Cake co-founder and CEO, told australiabusinessblog.com. The company has also appointed Fadi Mourad, former Dollar Shave Club Chief Innovation Officer, to lead product innovation, and former SmartyPants CEO Christina Komen to lead retail.
“We’re working with a recurring theme to bring sex back within reach,” Morris said. “Retail has been kind to us and the expansion has been faster than expected. As we get more clarity on Cake’s target audience, we’re figuring out where they shop and go to those places. We can’t go into details right now, but we will have a new, exciting retailer that will sell Cake in 2022 and 2023.”