Modibodi has sold its business to the Swedish company, Essity, which specialises in health and hygiene. What's next in store for this Aussie-grown success story?
The Australian leakproof underwear company sold the business for $140 million to Essity. Essity specialises in hygiene products, selling other essentials like nappies, tissues, feminine care and orthopedics, among many others.
The transaction is expected to be completed in the second half of 2022.
Modibodi was founded in 2011 by Kristy Chong, an entrepreneur from Sydney. While living in Seattle, she experienced light bladder leakage in the middle of a marathon and found that traditional solutions were ugly.
“I just felt we deserved something better,” she told Power Retail. “Once I realised how problematic the issue was, I also couldn’t understand why, with all the advancements in technology, underwear and disposable hygiene had not evolved.”
Chong developed a patented Modifier Technology™ leak-proof solution that has since transformed the hygiene industry worldwide.
In 2021, Modibodi won the Power Retail Top Innovator Award at the All Star Bash. And things haven’t stopped since.
The business has expanded beyond women’s period underwear; it now offers underwear for teenagers, men, maternity and even swimwear. And it goes beyond periods, Modibodi caters to incontinence, perspiration and pregnancy, too.
“I’m really proud that I took that idea and turned it into a product and now a range of products that can more conveniently, comfortably and reliably manage menstrual flow, incontinence, sweat and even breast milk leaks, and reduce the number of single-use products ending up in landfill and damaging our environment,” she told us.
In its first year, Modibodi generated $50,00 in revenue. In 2021, it generated roughly $56.7 million. So, how did the brand get to this position?
Launching with a strict budget and no capital funding, it was all about PR and Chong’s marketing background. “I was writing to journalists and influencers and pitching stories – that way, my time was about how we generated marketing and brand awareness,” she explained.
The business has come a long way since now acquired by Essity for $140 million.
The leakproof underwear industry has rapidly evolved since the meteoric rise of Modibodi, with the industry expanding a further 20 percent in the next five years.
Of the acquisition, Chong expressed her excitement: “I am proud of all we have created at Modibodi over the past nine years and pleased that Modibodi is joining Essity.”
“As a global leader in hygiene and health, Essity can provide the expertise and capital to take the brand forward during its next phase of growth, and achieve even greater impact,” she said.
Essity will continue to expand the Modibodi business, and continue to strengthen its existing product line. “The acquisition of Modibodi strengthens Essity’s position in leakproof apparel and enables faster growth within better-for-you, better-for-the-planet solutions,” said Essity CEO, Magnus Groth.
“Modibodi has the qualities we are looking for with leading market positions, strong brand and sustainability credentials as well as excellent digital marketing and e-commerce capabilities.”
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