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AR Beauty Company Perfect Corp Going Public by SPAC with Value of $1.020 billion

Beauty and fashion software services company Perfect Corp has agreed to merge with Provident Acquisition Corp, a special purpose acquisition company, with plans to go public in the United States.

Perfect Corp. recently announced that it has entered into a merger agreement with Provident Acquisition Corp., an SPAC company, and is expected to list on NASDAQ under the ticker symbol “PERF” in the third quarter of this year.

According to the merger agreement, SPAC of Perfect Corp. will be valued at approximately $1.02 billion. Moreover, the merger is expected to raise $335 million for Perfect Corp., including $50 million in PIPE, $55 million in FPA and $230 million held in trust by Provident.

Founded in 2015, Perfect Corp. focuses on developing SaaS technology services for the beauty and fashion industries through AI and AR. Specific solutions include 3D face and hand modeling. It also offers AI skin detection and simulation, AR image support consulting, real-time virtual product trials, and personalized facial feature detection and recommendations.

In general, with products from Perfect Corp., users can try cosmetics and skincare products anytime and anywhere, instead of sitting in front of a mirror, spending 10 minutes applying foundation and lipstick, spending 5 minutes wiping them off after they don’t like the look, and then spending 10 minutes on a new round of makeup afterward.

To date, technology service solutions of Perfect Corp. cover 19 of the top 20 global beauty groups and have partnered with more than 420 beauty brands in over 80 countries worldwide, while its apps have been downloaded over 950 million times worldwide and its virtual product trials exceeded 10 billion times per year.

Based on the beauty and fashion sectors, Perfect Corp. is now gradually providing similar services to brands in the eyewear, nail, watch, jewelry and fashion accessories industries.

In addition to brand-side partnerships, Perfect Corp. has likewise partnered with platforms such as Ali’s Tmall and Taobao Beauty, Google, YouTube, Snapchat, Instagram and others in order to help brands better engage, interact and retain consumers by calling on makeup trial tools on the platform.

In terms of financial data, revenue of will grow at a compound annual rate of 63% from 2018 to 2020. As for the net dollar retention rate, which is more central to SaaS companies, Perfect Corp. is 155% from 2018 to 2020, while the average annual customer retention rate from 2017 to 2020 is 94%. The average annual customer retention rate from 2017 to 2020 is 94%.

Zhang Huazhen, the founder and CEO of Perfect Corp., said, “Perfect Corp. drives the transformation of the beauty and fashion industry, pioneering an innovative consumer journey with the world’s leading AR and AI SaaS technology services. At the same time, our innovative technology provides brand consumers with a fun, convenient and personalized omnichannel shopping experience, regardless of brand size and various customer engagement channels.”

“The current consumer trends of increased omnichannel penetration, heightened environmental awareness and growing ESG focus are fueling our growth and service utilization. The merger with Provident allows us to access public capital markets, attract more world-class investors, enhance corporate governance, expand our markets, expand AI and AR technology development, and explore untapped areas such as other fashion-related industries and the application of play beauty technology to the metaverse.” Zhang Huazhen added.

It is worth noting that the investors involved in this PIPE include major international beauty brands such as CHANEL and SHISEIDO as well as head social platforms such as Snap.

Prior to this, Perfect Corp. had also received investments from well-known institutions such as Alibaba, Goldman Sachs, and CCV. Among them, CCV invested in Perfect Corp. exclusively in Series A financing in 2017 and has continued to raise capital since then.

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