Foxtale Consumer, a direct-to-consumer (D2C) skincare company, has secured approximately $14 million (Rs 120 crore) in new equity funding, as disclosed in regulatory filings with the Registrar of Companies.
The funding was spearheaded by Panthera Growth Partners, a Singapore-based investment firm, with continued support from existing investors Matrix Partners India and Kae Capital.
Founded in 2021 by Romita Mazumdar, formerly of Mumbai’s A91 Partners, Foxtale Consumer had previously raised $4 million in 2022 from Matrix Partners and Kae Capital.
Panthera Growth Partners has a history of supporting Indian consumer startups like BigBasket, Pepperfry, and Zivame. Meanwhile, Matrix Partners has invested in direct-to-consumer (D2C) startups such as The Whole Truth, Damensch, and Country Delight. Kae Capital, another investor in Foxtale Consumer, has backed startups like Healthkart.
In its first full operational year of 2022-23, Foxtale Consumer reported operating revenue of Rs 14 crore and a net loss of Rs 18 crore. The company strategically invested in branding and marketing efforts, as indicated by regulatory filings from Tofler.
In the skincare segment, which encompasses products like moisturizers, serums, sunscreen lotions, creams, and gels, Foxtale Consumer faces competition from brands like Peak XV Partners, Unilever Ventures-backed Minimalist, Vertex Ventures-backed Pilgrim, Nykaa’s Dot & Key, A91 Partners-backed Plum, and Honasa Consumer’s Mamaearth and The Derma Co.
A study conducted by Redseer Strategy Consultants and Peak XV Partners projects that India’s beauty and personal care market will experience significant growth, with an anticipated compounded annual growth rate of 10% from 2022 to 2027. This expansion is expected to propel the market to a size of $30 billion.
Foxtale Consumer’s recent funding round aligns with a broader trend where risk capital investors are shifting focus toward consumer brands over technology companies. This shift is driven by the relatively high valuations commanded by technology startups in the current investment landscape.
Foxtale Consumer’s recent funding round, securing about $14 million in fresh equity, is part of a broader trend among consumer brands. This includes Mokobara, a luggage maker that raised $12 million in February led by Peak XV Partners, Nat Habit, a beauty and wellness brand that received a $10 million infusion in December 2023 led by Bertelsmann India Investments, and Pilgrim, a personal care brand that secured $20 million in funding in September of the previous year, led by Vertex Ventures.
