Bollywood superstar Deepika Padukone’s personal care startup, 82°E, is gearing up for further growth by raising new capital. According to a regulatory filing accessed by Entrackr, the company is set to secure Rs 50 crore (approximately $6 million) in an extension of its seed funding round. This will be the first round of investment for 82°E in 2024.
Fueling Growth and Expansion
The board of directors at 82°E has approved the issuance of 50 lakh (5 million) Series Seed 2 Compulsorily Convertible Preference Shares (CCPS) at an issue price of Rs 100 each. This move aims to raise Rs 50 crore to fuel the company’s expansion plans and support overall corporate growth.
Investor Participation
The filing reveals that KA Enterprises LLP, an investment entity co-owned by Deepika Padukone and her family, will participate in the funding round. While the names of other potential investors haven’t been disclosed yet, the new funds are expected to be allocated towards expansion, growth initiatives, and general corporate activities.
Previous Funding Round
82°E secured its initial seed funding of $7.5 million in December 2022. The round was led by DSG Consumer Partners and IDEO Ventures, along with Padukone’s family office. As per startup data platform TheKredible, Padukone and her family hold a majority stake (59.6%) in the company, followed by actor Ranveer Singh with a 5.32% shareholding.
A Flourishing Brand
Padukone and co-founder Jigar Shah launched 82°E in 2022, and it now offers a comprehensive variety of skincare and body care products for both men and women. Their product line includes cleansers, facial masks, moisturizers, sunscreens, and more. The company had tremendous growth in the first nine months of FY24 (April 2023 to December 2023). During this year, their operating revenue increased significantly to Rs 22.82 crore, up from Rs 11 crore in FY23.
Financial Snapshot
Despite sales increase, 82°E continues in the negative region for EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). The company reported an EBITDA loss of Rs 25.1 crore for the period March 2023 to December 2023. 82°E operates in India’s vibrant direct-to-consumer personal care sector. Plum, mCaffeine, Wow Skin Science, and Mamaearth, which is publicly traded, are among the main rivals.
Deepika Padukone’s Star Power
Deepika Padukone’s association with 82°E has undoubtedly bolstered brand awareness and garnered initial traction. However, to achieve long-term success, the company needs to focus on building customer loyalty through product quality, competitive pricing, and strategic marketing initiatives. The upcoming funding round presents a significant opportunity for 82°E to accelerate its growth trajectory. The fresh capital can be used to enhance product development, expand distribution channels, and implement effective marketing strategies to stay ahead in the competitive D2C beauty market.
Enhancing Brand Positioning
82°E can further strengthen its brand positioning by:
- Product Innovation: Continuously innovating and introducing new, high-quality products that cater to evolving consumer needs.
- Focus on Sustainability: Highlighting the use of sustainable and ethical ingredients can resonate with environmentally conscious consumers.
- Building Customer Loyalty: Implementing loyalty programs and personalized customer experiences can foster brand loyalty.
- Strategic Collaborations: Exploring partnerships with influencers and beauty bloggers can enhance brand reach.
Leveraging Digital Marketing
In today’s digital age, a robust digital marketing strategy is crucial for D2C brands. 82°E can capitalize on the power of social media platforms to engage with potential customers and build brand communities. With a focus on innovation, quality, and a strategic growth plan, 82°E has the potential to carve a niche for itself in the Indian D2C personal care market. The upcoming funding round can serve as a springboard for the brand’s future success, allowing it to compete effectively and emerge as a leading player in the ever-evolving beauty industry.
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