A skincare startup that sells directly to consumers, Foxtale secures $18 million (about 150 crore INR) in a Series B funding round. This funding was led by Singapore-based Panthera Growth Partners, and existing investors Matrix Partners India and Kae Capital also participated.
According to Romita Mazumdar, the startup’s founder and CEO, the Mumbai-based startup plans to use this new funding to grow its online presence and add more product categories.
Foxtale’s Growth and Financial Performance
Customer Reach: Foxtale serves customers in over 100 cities in India, focusing on women aged 23-35 in tier I, tier II, and tier III cities.
Revenue and Sales:
- In the financial year 2023-24 (FY24), Foxtale achieved a gross merchandise value of INR 172 crore.
- In FY23, the company saw a significant increase in revenue, earning INR 13.8 crore compared to just INR 20 lakh the previous year.
Losses:
- Despite the revenue growth, Foxtale’s losses increased. In FY23, it lost INR 18.49 crore, up from INR 2.48 crore in FY22.
Customer Retention and Future Plans:
- Foxtale claims to have a customer retention rate of over 50%.
- The company aims to become profitable by FY25.
Foxtale’s Market Position and Industry Context
Foxtale was featured in Inc42’s 2024 FAST42 list of top emerging D2C brands in India. It competes with brands like Minimalist, Pilgrim, Plum, and Mamaearth. In March, Foxtale raised INR 119 crore ($14.4 million) in a funding round led by Panthera Growth Partners, with Matrix Partners India and Kae Capital participation. Before this, in 2022, it secured $4 million in pre-Series A funding led by Matrix Partners India.
India’s beauty and personal care (BPC) sector is growing rapidly due to strong consumer demand for tailored products. This growth has led to the rise of innovative brands, attracting significant investor interest. For example, skincare startup CHOSEN by Dermatology recently raised $1.2 million in seed funding, and WOW Skin Science is in talks to raise $65-75 million at a $400 million valuation.
According to an IMARC Group report, India’s BPC market reached $26.3 billion in 2022 and is expected to grow to $38 billion by 2028, with a CAGR of 6.45% from 2023 to 2028.
Recent Developments in the Indian Skincare Market
Recently, CHOSEN by Dermatology, a skincare solutions startup, secured $1.2 million (about INR 10 crore) in seed funding from friends and family. Additionally, WOW Skin Science, based in Bengaluru, is reportedly in discussions to raise $65-75 million, aiming for a valuation of $400 million.
India’s beauty and personal care (BPC) market is experiencing significant growth. According to an IMARC Group report, the market size was $26.3 billion in 2022 and is expected to reach $38 billion by 2028, growing at a compound annual growth rate (CAGR) of 6.45% from 2023 to 2028.
About Foxtale
Founded: 2021
Purpose: Foxtale provides skincare solutions for issues like acne, aging, and hyperpigmentation.
Products: They offer serums, masks, moisturizers, face washes, and sunscreens.
Sales Channels: Products are available on Foxtale’s website, online marketplaces, and in physical stores.
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