FUNDING OF COSMETICS AND BEAUTY STARTUPS DOUBLES TO $108 MILLION THIS YEAR
In the last few years, India’s beauty and person care industry is on a roll, all because of the online sales of products, premiumisation, and an inclination towards organic and ethical brands.
As per the report of Euromonitor International, online retailers like Nykaa and Amazon have given a boom to the industry and it has crossed $400 million in internet sales up from $100 million in 2014.
Apart from the different driving forces behind this boom, investment has played a major role. Many start-ups belonging to this domain have seen double in the number of investments as compared to the last year. This year, the investment in beauty and cosmetics has reached a gross $108 million in 2019 that is shockingly high as compared to $51 million in 2018. The number of deals also increased from seven to 12.
In April 2019, Nykaa saw a deal of $14 million in April that raised its valuation to over $700 million while MyGlamm brought in $19 million from Bessemer Ventures. Moreover, smaller firms like Roots Ventures and Sauce.VC is also creating its place in the market.
In recent times, the emerging starts have gone through a great upsurge in business and partnerships. In April, Nykaa struck a deal, which cost around $14. It in results added to and yielded a valuation to the company of about $700 million. In the same way, MyGlamm added about $19 million from Bessemer Ventures.
This realm of skincare and beauty products is expected to grow at a rapid pace and amp up the venture in the result because of the demand and raising attention of people for wellness and beauty consciousness. They are eagerly trying newer options and purchasing cosmetics and various skincare products. The increasing demand and use have created business opportunities for start-ups in the cosmetics and beauty industry.
These beauty products are watching a huge increment in the number of audiences on a regular basis. Among Amazon’s big deals and Flipkart’s Deal of the Day, these startups are writing a new phase with good revenue generation. That the why; investors are getting potential in this domain and are shifting from the chaotic high margin business to this emerging cosmetic business. And, raising homegrown brands are presenting a lot of capabilities and are currently showing much winsome potential.
Furthermore, many foreign players are looking forward to starting their venture in India and sell their brands. This is bringing great impact on the industry overall and all consumer companies the growth rate has become stellar and multiplied by 2-3 times.
In this modern age, consumers are becoming aware of personal care and beauty, now they do not subscribe to a one-size-fits-all approach offered by traditional, off-the-shelf products. They are looking for a unique and customized solution according to their look, body structure, and skin. VCs and investors are keen to invest in start-ups, who have a clear plan for sustainable and profitable growth.