The Gurugram-based cosmetics brand Belora seems to be on the brink of closure, as it has struggled to secure additional funding or attract potential buyers. Two sources from Entrackr have indicated that the company may be forced to cease its operations.
“Belora tried to raise capital from new and existing investors including Surge but the efforts didn’t materialize,” said one of the sources requesting anonymity. “The company also explored consolidation opportunities in the cosmetic space and held discussions with several players.”
It has been reported by sources that the discussions regarding a potential merger and acquisition (M&A) also failed to culminate in an agreement, raising the likelihood of the company having to shut down its operations entirely.
The imminent shutdown is also evident from the company’s website, which has been non-functional for several weeks. A message on the site states, “The Site is getting upgraded, we will relaunch soon. Thank You.”
Established in 2019 by Ainara and Akaljyot Kaur, the company secured pre-Series A funding from Peak XV Partners’ Surge, DSG Ventures, and several angel investors. It was also a participant in the fifth cohort of the Surge accelerator program.
Surge chose not to provide a comment on the matter, and inquiries sent to Belora’s co-founder and CEO, Ainara Kaur, as well as DSG on Tuesday, remained unanswered.
Belora used to offer vegan and toxin-free makeup and skincare products, including lipsticks, moisturizers, kohl, and eyeshadows. According to the company, it focused on finding ingredients that follow international certifications and claimed to be the first certified makeup brand across Europe and Asia.
Last year, the company stated its presence in 100 stores-in-stores and outlined intentions to open another 100 in the following couple of months. CEO Kaur expressed the goal for Belora to become a INR 500 crore brand in terms of annual run rate over the next 3-4 years. The firm reported an annual revenue of INR 15 crore for the fiscal year 2022, and its FY23 figures are pending disclosure.