Better Beauty has raised $200K from Indian cosmetics brand Lotus Herbals
The startup will use the funds for brand marketing, research and development, and grow its offline presence
The startup targets INR7.2 Cr annual revenue rate and aims to expand its product portfolio up to 10 in a year
TV Actress Anita Hassanandani-led direct-to-customer (D2C) startup Better Beauty has raised $200K from Indian cosmetic brand Lotus Herbals.
Better Beauty plans to utilise the funds for brand marketing, research and development, and grow its offline presence. Further, the startup plans to use the fresh capital to expand the team, enhance product offerings, and make acquisitions.
“Better Beauty- is a luxurious, sustainable and honestly crafted skincare brand on a mission to deliver clean and conscious beauty products,” said Nitin Passi, chairman and managing director, Lotus Herbals.
Founded by Vanity Wagon’s cofounder Naina Ruhail and television actress Anita Hassanandani, Better Beauty is a clean beauty brand. It offers a range of skincare products such as moisturiser, face serum and face cleanser, among others.
Better Beauty said that it aims to achieve INR 7.2 Cr annual revenue rate and grow its product portfolio up to 10 in a year. It sells products via its website and ecommerce marketplace–Vanity Wagon.
“Consumers today are looking beyond marketing claims and are seeking efficacy-based skincare products. My journey in the entertainment industry has been a lot about connecting with my viewers and that is also my vision with Better Beauty,” Hassanandani said.
Better Beauty claims to have delivered products to over 10K customers so far. It further plans to foray into international markets and create an exclusive product line based on new cell technologies that are employed in the skincare segment, the startup said.
“We are going to focus on expanding our product catalogue, marketing budgets and increasing our offline presence across the country. It will also enable us to penetrate deeper markets and create and formulate some pathbreaking products,” Naina Ruhail said.
According to the startup, it aims to achieve a positive EBITDA in the next 1.5 years. It further looks to increase its valuation by 5x in the next one year.
In clean space, it competes with the likes of Asa Beauty, Nature’s Tattva and mCaffeine, among others.
Funding Deals In India’s Clean Beauty Startup Segment
The clean beauty space has seen a slew of fundraising activities recently. In March, clean beauty startup mCaffeine secured over $31 Mn from Paragon Partners, Singularity Growth Opportunities Fund, Sharrp Ventures, Amicus Capital Partners and RPSG Capital Ventures.
Besides, in January, Lotus Herbals acquired 25% stake in clean beauty startup Conscious Chemist for an undisclosed amount.
Meanwhile, Shraddha Kapoor-backed MyGlamm entered the coveted unicorn club in November last year after securing $150 Mn in its Series D round from Prosus Ventures, Warburg Pincus, Alteria Capital and other investors.
In 2021, clean beauty brand Bella Vita Organics too secured $10 Mn from Ananta Capital.
According to a report, the Indian clean beauty sector is pegged at $0.84 Bn in 2022. The industry is expanding at a CAGR of 3.41% between 2022 and 2026.
