Foxtale Secures INR 119 Cr To Bolster Its D2C Skincare Play

D2C beauty and personal care (BPC) brand Foxtale has secured INR 119 Cr (nearly $14.4 Mn) in a funding round led by Singapore-based Panthera Growth Partners.

As per regulatory filings accessed by Inc42, the round also saw participation from existing investors Matrix Partners India and Kae Capital via multiple entities. 

Founded in 2021 by former venture capitalist Romita Mazumdar, the D2C brand sells skincare products such as serums, masks, moisturisers, face washes, sunscreens, among others. 

Foxtale primarily sells its products through its own website, online marketplaces as well as offline stores. It claims to have a presence across 1,050 offline retail stores and 50 modern trade chains such as Health & Glow and Dabur NewU. It claims to have served 5.5 Lakh consumers till the end of February 2024.

The startup last raised $4 Mn in its pre-Series A funding round led by Matrix Partners India in 2022. 

The D2C brand clocked a revenue of INR 13.8 Cr in the financial year 2022-23 (FY23), up 69X from INR 20 Lakh in the year ago period. However, its loss soared 7.5X to INR 18.49 Cr in the year ended March 2023 as against INR 2.48 Cr in FY22.

With an eye on category expansion in 2024, Foxtale is eyeing an annual run rate (ARR) of INR 1,000 Cr with 20% positive EBITDA in 2025

The startup also featured in the 2024 edition of Inc42’s FAST42 list of the country’s top and emerging 52 D2C brands.

Foxtale competes with the likes of Minimalist, Pilgrim, Plum, and Mamaearth in the D2C space. 

The new fundraise is expected to give a boost to the homegrown D2C space, which has been reeling under the impact of funding winter. The capital drought resulted in the funding raised by Indian D2C startups plummeting more than 26% to $1.4 Bn in 2023 from $1.9 Bn in 2022. 

However, as global macroeconomic pressures show signs of abating, along with easing of inflation, experts expect an improvement in user sentiment in the coming months. As a result, India’s D2C ecosystem already appears to be on the mend.

Earlier this month, D2C luggage startup Mokobara secured $12 Mn in a funding round led by Peak XV Partners. Before that, D2C food brand Yu bagged INR 20 Cr in a Series A funding round led by angel investor Ashish Kacholia and Asian Paints Promoter Group.

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