D2C skincare brand Foxtale raises $30 million in series C funding from Japan’s KOSÉ Corporation

Foxtale founder and CEO Romita Mazumdar

Foxtale, a direct-to-consumer (D2C) skincare brand, on Tuesday announced that it has raised $30 million (approximately Rs 250 crore) in a series C funding round, led by Japanese cosmetics company KOSÉ Corporation. The round also saw participation from existing investors Panthera Growth Partners, Z47 and Kae Capital.

The company also entered into a strategic partnership with KOSÉ Corporation to expand the Japanese firm’s presence in India.

Foxtale will primarily use the funds to improve its research and development (R&D) capabilities and deepening its presence across the country, founder and CEO Romita Mazumdar told Moneycontrol on January 15.

“We are roughly at a scale of Rs 300-350 crore in gross revenue, and have grown 150 percent over last year… We will also have category expansion over the next one or two years. Currently, we are only in skincare with around 18-20 SKUs (stock-keeping units) and limited SKUs in body care,” she said.

The fundraise comes roughly nine months after Foxtale raised $18 million (around Rs 150 crore) led by Singapore-based Panthera Growth Partners.

Founded in 2021 by Mazumdar, Foxtale claims to develop 100 percent of its product offerings in-house, which each take roughly 18-24 months to develop. The company has served over 15 lakh customers since inception.

Like many other emerging D2C brands, the company primarily functions through online distribution, with over 50 percent of its revenue coming from its own website. The company aims to achieve profitability by the close of the next financial year. Foxtale is also seeing impressive growth via quick commerce.

“For us, quick commerce is growing extremely fast. It is profitable, and we feel confident in continuing to scale sub-categories that we have already built through our other digital platforms… Most of our products on quick commerce channels usually grow 6x-7x within six months of launch,” Mazumdar said.

The company’s growth plans also come at a time when D2C brands are facing a slowdown, with many also facing consolidation.

Also read: D2C consolidation: Value creation for FMCG majors, wealth creation for founders

Moneycontrol was first to report that FMCG major Hindustan Unilever Limited (HUL) is nearing a deal to acquire Peak XV Partners-backed Minimalist, a Jaipur-based skincare startup, in a Rs 3,000 crore ($350 million) deal.

Listed beauty and personal care major Mamaearth has also faced issues relating to offline distribution amid a demand slowdown.