An exciting online beauty startup announced a funding of USD 35 million
An online beauty startup has raised funds. What an exciting and beautiful piece of news it is!
Let us talk about the online beauty industry. First of all, we should know what is the beauty industry. It consists of sales of cosmetics, perfumes, and other products for the care of skin and hair. Traditionally beauty salons and spas are considered to be a part of the beauty industry, but with changing times, health clubs and cosmetic surgeries are also considered a part of the beauty industry.
The various range of products and services which come under the umbrella of the beauty industry are- personal products like skincare, color cosmetics, hair care, fragrances, beauty appliances like hairdryers, brushes, combs, services like salons, day spas, and related functions like packaging, supply chain, and many others.
The beauty industry is seeing an explosion, a huge increase in demand. The reasons for this can be-
1. Women who are the main consumers of the beauty industry are now on the journey of self-exploration. The younger generation of females are not going after the brands that their parents went to, they are looking out for newer brands.
2. The brands which are young and have joined the market are every day bringing into creativity. These brands are bringing a change in the beauty industry.
3. There are acquisitions happening by the big beauty companies which are acquiring smaller companies in this domain. One of the major reasons for this is that the big brands are now sacred of the young independent brands, which are being preferred by the consumers now.
The beauty industry in our country is of the value of more than USD 11 billion, then followed by hair care and personal hygiene products which have a market value of more than USD 3 billion. Now coming to the online beauty market, traditionally it was covered by the big multinational brands but now many new startups are also coming like The Good Glamm group, Sugar Cosmetics, Purplle, and Mamaearth. Even Nykaa has entered into the public market by launching its IPO.
Let us now talk about the funding of an online beauty startup that has taken place recently.
Announcement of funding of an online beauty startup
The online beauty startup, Plum has raised funds worth USD 35 million, which is almost equivalent to INR 270 crore, as announced on March 23, 2022. This round of funding that has taken place and is being discussed is led by A91 Partners. The other participants of this round of funding are the existing investors of the startup, Unilever Ventures, and Faering Capital.
The online beauty startup plans to use the funds raised in growing its omnichannel presence. The startup also plans to use a portion of the funds raised in accelerating its expansion in categories beyond skincare, and also to enter into new geographies. The startup also has plans to invest in the domains of marketing and technology.
The total funds raised by the beauty startup after this round of funding have come up to USD 50 million, which is equivalent to INR 380 crore. The value of the startup after this round of funding has come up to USD 250 million, which is equivalent to INR 1900 crore.
About the online beauty startup that has announced its funding
The online beauty startup, Plum was founded in the year 2013 by Shankar Prasad, who is also the CEO of the startup and has its headquarters in Thane, Maharashtra. The online beauty startup is a fresh line 100% vegan beauty product that is all about “being good”- to the skin, the senses, to others, and to the environment.
The online beauty startup is of the belief that people look prettiest in the skin they were born in. Plums are formulated with love to protect, repair, nourish, and delight using some of the richest sources of natural nutrients in sync with “good science”.
The features of the products of the startup that make it different are-
Always free from parabens phthalates.
Cruelty-free and vegan-free.
1% for the planet member
The startup respects diversity and protects natural skin and thus the one thing it isn’t and will never be is the manufacturer of fairness creams.
The values which the online beauty startup follows help it in setting direction and give sense of purpose to what it does. The values inspire the startup and give it the power and the responsibility to question and to decide. Values are put to the test when choices are to be made. The four core values which shape the startup Plum are-
1. Customer Delight- their joy is the joy of the startup
2. Respect- For human capability, diversity, and hard work
3. Transparency- Nothing to hide
4. Sustainability- Preserve the good people have been blessed with
Around 40% of the sales of the startup are performed through an offline medium, a quarter of sales are done through its own online platform, and the rest of the sales are done from the online marketplaces. The startup is present in around 250 towns and cities of the country. It has three exclusive outlets in Mumbai and Chennai and is planning to increase the number to 12-15 outlets in the next 2-3 months.
About A91 Partners
With headquarters in Mumbai, Maharashtra, A91 Partners is engaged in coming into a partnership to build enduring businesses for tomorrow’s India. The beliefs of A91 Partners are-
Make commitments, not bets
Bring the firm to every investment, not just an individual partner
Speed matters, but velocity matters more
Founders come in all forms, there is no “ideal” type
Stewardship of capital creates a difference
The portfolio of A91 Partners consists of companies like Freshworks, Capital Float, Koye, Ola, OYO, Mobikwik, MAD, Urban Ladder, Yellow Diamond, UnitedLex, Porter, Go Colors, La Renon, F Capital Float, and many others.
About Unilever Ventures
With headquarters in London, the United Kingdom, Unilever Ventures is the venture and growth capital arm of Unilver. It supports forward-thinking founders who are crafting brands for the modern consumer. It offers the global reach of Unilver and the agility of a skilled venture capital team. The best of both worlds.
Unilever Ventures invests in beauty and wellness brands, commerce, and technology. The portfolio of Unilever Ventures consists of companies like True Botanicals, Instacart, Frank Body, Plum, Nutrafol, and many others.
About Faering Capital
With headquarters in Mumbai, Maharashtra, Faering Capital is a leading Indian private equity firm with significant experience and a proven track record. It is engaged in coming into partnerships with exceptional companies in navigating sustainable growth.
The portfolio of Faering Capital consists of companies like Nykaa, Plum, Niva Health Insurance, Small Case, Digit Insurance, Anthem Biosciences, and many others. It has a track record of 11 years, with more than USD 600 million in assets under management, and has made 28 investments.
The online beauty startup is offering something in a way that is changing the image of the beauty industry of the country. We wish the startup s a bit of good luck and hope it has a bright and beautiful future ahead!