Citrify launched a free, browser-based photo editor earlier this week, that lets you pretty up your headshot by removing blemishes, erasing wrinkles and whitening teeth. It also lets you add effects to pictures — for example, you can Obamify your picture based on Shepard Fairey’s widespread red and blue image. The company launched a desktop version in November 2009, but it didn’t catch on, so the team spent the last few months improving the service for better browser performance.

Citrify runs on Adobe Flash, and it’s investigating HTML5 Canvas for future versions. The service is currently free, but will begin charging for photo prints once it’s gained a sizable audience.

The company is based in Ottawa, Canada, and is entirely self-funded, with cash flow from software licensing deals. It recently signed two customers that will integrate Citrify’s software into their sites.

Cofounder Zee Yang has a technology background and sold startup formdriven.com, a web-based PDF form design tool, in early 2009. The company’s other cofounder, Tali Weissberger, has a photography and marketing background.

Competitors include Adobe’s Photoshop Elements and Apple’s iPhoto, both of which require software installation, and Picnik and Photoshop, which require users to sign up for an account and upload their photos.

You can see a tutorial of the new service here.