Foxtale, a rising star in the direct-to-consumer (D2C) skincare sector, has raised $18 million (Rs 150 crore) in its Series B funding round. Led by Singapore-based Panthera Growth Partners, this funding is a significant milestone for the fledgling company, driving it further into the competitive Indian cosmetics sector. The financing round was not a solo performance. Existing investors Matrix Partners India and Kae Capital also took part, reflecting their sustained belief in Foxtale’s ambition. IndigoEdge, a financial advice firm, supplied Foxtale with crucial guidance during the sale process.
Foxtale Funding
This announcement follows earlier claims from Entrackr, a startup intelligence platform, which hinted at the first tranche of this fundraising round back in March. Foxtale’s valuation is expected to be approximately Rs 790 crore ($96 million) once all monies have been allocated. This recent investment raises Foxtale’s total capital to more than $22 million. Previously, the company raised $4 million in a pre-Series A investment led by Matrix Partners and Kae Capital in June 2022, following a seed funding round in August 2021.
Foxtale’s Founders
Foxtale, founded in 2021 by Romita Mazumdar, has carved out a niche for itself by providing high-quality, cheap skincare treatments tailored exclusively to Indian skin types. Their product line addresses common conditions such as acne, aging, and hyperpigmentation, providing a comprehensive approach to healthy skin. Foxtale does not limit itself to its own website; they have a strong presence on popular online marketplaces such as Nykaa, Amazon, Blinkit, Flipkart, and Myntra, ensuring maximum accessibility for their clients.
The company’s growth trajectory is impressive. During FY23, Foxtale had a tremendous expansion in scale, with revenue rising from Rs 20 lakh to a startling Rs 13.8 crore. However, this development was accompanied by an increase in operational expenditures, with losses totaling Rs 18.59 crore in FY23, up from Rs 2.48 crore the previous year.
Foxtales Optimism
Despite these growing pains, Foxtale maintains optimism. They have a remarkable Gross Merchandise Value (GMV) of Rs 172 crore for FY24, which is mostly due to sales on their website. Furthermore, a customer retention percentage greater than 50% demonstrates the efficiency of their products and brand loyalty. Foxtale has set its sights on achieving profitability in FY25, based on the momentum it has created. This new round of funding will surely fuel their expansion aspirations and product development initiatives.
The Indian skincare market is very competitive, with established firms such as Sugar Cosmetics, WOW Skin Science, Plum, MamaEarth, Minimalist, and others competing for market share. Foxtale’s devotion to quality, affordability, and a focus on Indian skin concerns positions them well to carve out a substantial niche in this competitive business. With a dedicated customer base and a clear goal for the future, Foxtale is on track to become a household name in the Indian cosmetics industry.
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