EkAnek’s Foxy To Raise INR 21.6 Cr From Lightspeed To Pivot To Beauty Consultations

Beauty ecommerce platform Foxy’s parent EkAnek is looking to raise INR 21.6 Cr ($2.5 Mn) as part of a funding round from existing backer Lightspeed India. 

As per regulatory filings accessed by Inc42, EkAnek passed a special resolution to allot 31,638 compulsorily convertible preference shares (CCPS) in favour of Lightspeed India at INR 6,827.4 apiece.

“… The consent of the members of the company be and is hereby accorded to create, offer, issue and allot 31,638 Series A3 CCPS of face value INR 100/- each at an issue price of INR 6,827.24 per share which includes premium of INR 6727.24/- on a private placement basis..,” said the company in its filings with the Registrar of Companies (RoC).

The company plans to deploy the capital to accelerate growth, expand footprint and for general corporate purposes. 

The latest fundraise comes a month after CEO Karthik Sheth told Livemint that the ecommerce platform was shifting focus to offer beauty and skincare consultation services. The report then had noted that Lightspeed India as well as Matrix Partners and Peak XV were planning to pump $10 Mn to fuel the shift. 

As per Entrackr, which first reported the fundraise, the infusion is likely part of an ongoing larger round. 

As per the filings, the beauty ecommerce platform also expanded its employee stock option plan (ESOP) pool by 7,520 stock options. With this, the startup’s total ESOP bank now stands at 29,657 options.

“… The consent of the members is hereby accorded for the increase in the ESOP pool of ESOP scheme 2019 by 7520 options from existing 22,137 options to 29,657 options on the terms set out thereof…,” added the company. 

There was no clarity on the valuation at which EkAnek raised the fresh capital. 

Founded in 2018 by Chandranshu Sinha, Kartik Sheth, Nikhil Gilani and Sachin Singhal, Foxy is an ecommerce platform that sells a wide range of beauty, grooming, and cosmetic offerings. 

The Delhi NCR-based startup last raised INR 40 Cr as part of its Series A1 round that saw participation from Alpha Wave as well as existing investors such as Matrix Partners India, Peak XV and Lightspeed India. The startup has reportedly raised $21 Mn till date.

Foxy reportedly clocked a 3.8X year-on-year (YoY) growth in operating revenues to INR 36 Cr in the financial year 2022-23 (FY23) while losses rose 8% to INR 28 Cr in the year ended March 2023 compared to FY22’s INR 25 Cr.

The development comes at a time when the Indian beauty ecommerce space is witnessing renewed competition in the past one year. The entry of conglomerates such as Reliance through Tira and Tata Group through Tata Cliq as well as strong incumbents such as Nykaa has spurred the competition in the space. 

As per Inc42, the number of online beauty shoppers in the country is expected to zoom to 122 Mn while with the homegrown D2C beauty and personal care space expected to surge to a market size of $5.6 Bn by 2025.