Osmo raises $70m to scale AI fragrance tech

"What excites me most is that we're building technology that will fundamentally change how entire industries harness the power of scent to improve the health and wellbeing of humans," said Alex Wiltschko, founder and CEO of Osmo.
"What excites me most is that we're building technology that will fundamentally change how entire industries harness the power of scent to improve the health and wellbeing of humans," said Alex Wiltschko, founder and CEO of Osmo. (Getty Images)

Digital scent design platform Osmo has raised $70 million in Series B funding as it moves to scale AI-powered fragrance development across cosmetics and personal care manufacturing.

The round, led by Two Sigma Ventures, brings Osmo’s total funding to $130 million and supports expanded commercial operations, manufacturing capacity and regulatory readiness as the company positions its Olfactory Intelligence platform for broader industry use.

Shifting from scent digitization to industrial deployment

CosmeticsDesign spoke to Osmo in early 2025 when the company first entered the industry conversation through its work on scent digitization, including its Scent Teleportation technology, which demonstrated the full digitization of scent without human intervention.

With the Series B, the company is now focused on translating that technical capability into repeatable, production-scale services for brands.

“Scent Teleportation proved the science works,” founder and CEO Alex Wiltschko said. “Now we’re building the commercial infrastructure to deliver on that promise at scale.”

Wiltschko said Osmo is positioning itself as an end-to-end fragrance partner, supporting fragrance creation through manufacturing and packaging. “This Series B is about continuing on the path of becoming the complete, turn-key fragrance partner to emerging and enterprise brands alike,” he said.

Early gains driven by speed and cost efficiency

According to Wiltschko, manufacturers adopting Olfactory Intelligence are seeing the fastest returns in two places. “Established brands are using Olfactory Intelligence to reduce fragrance costs and accelerate time-to-market,” he said.

He noted that AI-driven exploration of scent profiles allows companies to streamline development cycles that would typically take months or even years. He also confirmed Osmo is also seeing “tremendous momentum with companies that have never offered fragrance before but have a story to tell through scent,” citing cost and complexity as historical barriers to entry.

Broadening access to custom fragrance

Osmo’s model is designed to change long-standing economic constraints in fragrance sourcing, as “traditional custom fragrance development from a large fragrance house is only accessible to select brands who have the capital to order at high MOQs (minimum order quantities),” Wiltschko said. “We’re making custom fragrance formulations accessible to any brand.”

He also noted that AI enables fragrance development to begin with limited inputs. “Custom fragrance formulation can now begin with a single idea,” he added, allowing both emerging and established manufacturers to explore options before committing to physical production.

IP protection remains a priority

As AI lowers barriers to fragrance development, Wiltschko emphasized that exclusivity and intellectual property protection are built into Osmo’s platform.

“When we create custom fragrance formulas for clients, those are their formulas,” he said. “We’re building infrastructure for digital olfaction, not a commodity scent library.”

Rather than standardizing fragrance, he said AI enables deeper differentiation by opening access to previously unexplored scent spaces.

New leadership targets manufacturing and regulatory scale

The Series B funding coincides with the appointment of a new executive leadership team with backgrounds in consumer packaged goods and flavors and fragrances.

Wiltschko said the additions address operational barriers that limited Osmo’s earlier growth. “We had the science, but now we have the operational muscle to deliver on it globally,” he said.

He noted that the expanded team enables Osmo to scale manufacturing capacity, manage regulatory compliance across markets and meet quality requirements at higher volumes, positioning the company to work with both global manufacturers and emerging brands.