Foxtale Consumer, a direct-to-consumer (D2C) skincare company, has secured approximately $14 million (INR 120 crore) in new equity funding. The investment was spearheaded by Panthera Growth Partners, a Singapore-based firm, as per regulatory filings submitted by the startup to the Registrar of Companies.
The funding round also included contributions from Foxtale Consumer’s current supporters, Matrix Partners India and Kae Capital.
Founded in 2021 by Romita Mazumdar, a former executive at Mumbai-based investment firm A91 Partners, Foxtale Consumer previously secured $4 million in funding in 2022 from Matrix Partners and Kae Capital.
Panthera Growth Partners has previously supported Indian consumer startups such as BigBasket, Pepperfry, and Zivame. Meanwhile, Matrix Partners has invested in various direct-to-consumer (D2C) startups, such as The Whole Truth, Damensch, and Country Delight. Kae Capital has backed startups like Healthkart.
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In its first full year of operations for 2022-23, Foxtale Consumer disclosed operating revenue of INR 14 crore and a net loss of INR 18 crore, attributed to substantial investments in branding and marketing, according to regulatory filings obtained from Tofler.
In the skincare sector, offering a range of products including moisturizers, serums, sunscreen lotions, creams, and gels, the Mumbai-based startup competes with brands like Peak XV Partners and Minimalist, backed by Unilever Ventures, Pilgrim backed by Vertex Ventures, Dot & Key from Nykaa, Plum backed by A91 Partners, and Mamaearth and The Derma Co. under Honasa Consumer.
As per research conducted by Redseer Strategy Consultants and Peak XV Partners, India’s beauty and personal care market is projected to surpass other markets, with a compound annual growth rate of 10% from 2022 to 2027, reaching a valuation of $30 billion.
At a time when Foxtale Consumer’s fundraising comes, risk capital investors are increasingly turning towards consumer brands from tech companies, owing to high valuations commanded by technology startups.
The latest round of funding follows a series of successful endeavors in the consumer brands sector. For instance, luggage maker Mokobara raised $12 million in a round led by Peak XV Partners in February. Additionally, beauty and wellness brand Nat Habit received a $10 million infusion in December 2023, led by Bertelsmann India Investments. Similarly, personal care brand Pilgrim secured a $20 million funding in September last year, with Vertex Ventures taking the lead.
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