WOW Skin Science, the direct-to-consumer skincare brand with notable backers like GIC and ChrysCapital, is reportedly in discussions with both current and prospective investors to secure fresh funding at a flat valuation.
The Bengaluru-based startup is aiming to raise between $65 million to $75 million in primary capital, maintaining a valuation of $400 million, matching the figure from its previous round in 2022 when GIC injected $48 million, as reported by Mint.
Reports indicate that WOW is currently in discussions with Japanese and Middle East-based funds for this funding round.
“The company has enlisted investment bank Investec to oversee the fundraising process, with consulting firm KPMG handling vendor due diligence,” cited one of the sources. “It’s still early stages, and the specifics of the fundraising will be determined in the months ahead.”
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Established in 2014 by Karan Chowdhary and Manish Chowdhary, WOW Skin Science asserts its commitment to crafting products using natural ingredients, devoid of sulphates, silicones, mineral oils, parabens, and artificial coloring. Their product range spans skincare, haircare, bathing essentials, fragrances, and nutritional supplements.
The brand competes with Plum, Honasa, Good Glamm Group, The Ayurveda Co, and various other players in the Beauty, Personal Care (BPC) sector. It also contends with newcomers like Gabit and The Minimalist.
Based on the company’s MCA filings, it recorded a total income of INR 273.01 Cr in FY23, down from INR 343.94 Cr in the previous fiscal year. Additionally, the loss increased to INR 213 Cr from INR 135 Cr in FY22.
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In the direct-to-consumer (D2C) sector, beauty, skincare, and personal care brands are gaining significant traction, largely due to omnichannel distribution and the growing popularity of quick commerce among consumers. Reports suggest that the projected count of online beauty shoppers in India will surpass 122 million by FY25.
We have been reassessing our narrative over the last 18 months, prioritising brand marketing over performance marketing. One of the co-founders, Manish Chowdhary, said, “It’s crucial to keep in mind that although a company’s products are manufactured in a factory, their brand is ultimately formed in the perceptions of consumers.”
The company’s products are now available in over 200 cities across India and have expanded to 22 countries, with a particular focus on the US and South Asia as key markets. In 2022, they successfully entered the UAE market, followed by Saudi Arabia in 2023.
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