Direct-to-consumer platform (D2C) skincare startup BrownSkin Beauty has raised $500,000 (Rs 3.5 crore) in seed funding from venture capital firm Sequoia Capital India at an undisclosed valuation, people close to the development told Moneycontrol.
According to the sources, the fundraise discussions had been on since August and concluded recently.
The company, which has products catering to Indian skin tones, plans to expand its portfolio as well as set up new e-commerce marketplaces with the fundraising.
BrownSkin Beauty currently houses 16 products for different Indian skin types in different climatic conditions. The company sells its products out of 12 marketplaces including its D2C website.
VJ, actor and television host Anusha Dandekar and Gaurav Kumar founded BrownSkin Beauty in November 2020 after realising the dearth of skin care products catering to brown skin or Indian skin. The company offers products such as face creams, serums, and face scrubs. Kumar also founded Lifetox Wellness, a new-age wellness brand, in 2018, and celebrity management firm HC Media in 2015.
The startup ecosystem in the last few years has seen mushrooming of several D2C companies in the beauty and skincare space positioned in the specialised segments. Of these, a few such as Pureplay Skin Sciences, which sells its products under the brand name Plum, and Honasa Consumer, which houses Mamaearth and The Derma Co, have made significant inroads in the segment. Mamaearth turned unicorn earlier this year and reported a revenue of Rs 925 crore, with a net profit of Rs 20 crore in the financial year 2022.
A report by Avendus Capital says beauty and personal care will be a $30 billion market by 2025, of which digital-first brands could have a $10-15 billion share.
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