RENEE Cosmetics Raises $10 Mn Led By Mensa Brands; To Expand Catalogue & Offline Presence

Delhi NCR-based D2C beauty brand RENEE Cosmetics has raised $10 Mn led by Ananth Narayanan’s D2C roll-up unicorn Mensa Brands. Existing investors Equanimity and 9Unicorns too have participated in the Series A round.

The funds will majorly be used to strengthen the brand’s offline presence, catalogue expansion and marketing budgets. RENEE currently sells products through all leading online channels and 500+ stores in the country.

With this Series A round, it has raised a total of $11.5 Mn to date, including the previous $1.5 Mn seed round in October 2021.

Founded in 2020 by Aashka Goradia Goble, Ashutosh Valani and Priyank Shah, RENEE Cosmetics is a beauty brand offering a wide range of eye makeup, lip colours, skin serums and highlighters. The startup boasts a portfolio of about 30 products across three categories.

At present, RENEE claims to clock an ARR of INR 60 Cr in FY22 and is all set to reach an ARR of INR 150 CR by FY23.

Interestingly, this is Valani and Shah’s second interaction with Mensa Brands. The founder duo’s previous D2C fragrance and apparel brand was acquired by Mensa Brands in 2021. Previously the duo also founded male grooming brand Beardo, which was later acquired by FMCG major Marico.

Beauty Is The Beast

The beauty and personal care market is one of India’s fastest-growing segments, driven by many market triggers and lifestyle changes. Traditionally controlled by legacy brands, the industry is now witnessing a boom due to changing perceptions, growing awareness about natural ingredients/chemical-free products, and most importantly, the rise of D2C companies making waves in the online retail space.

The online beauty and personal care market is estimated to reach $5.6 Bn by 2025, according to an Inc42 report, titled D2C Beauty & Personal Care In India: Customer Perception Report, 2021.

Online beauty marketplaces have received big cheques in 2021. While SUGAR Cosmetics bagged $21 Mn in its Series C round in February 2021, Mamaearth closed $50 Mn in a fresh round in July and later turned a unicorn in December 2021, as reported exclusively by Inc42. In April 2021, WoW raised $50 Mn from ChrysCapital. Purplle raised around $49 Mn in its Series D round and brought Wipro founder-chairman Azim Premji on its captable.

FSN E-Commerce, which runs Nykaa, another competitor, went public in November 2021 and marked a stellar listing on the stock exchanges with a 79% premium.

Only last week, D2C grooming and personal care startup Bombay Shaving Company (BSC) raised an additional INR 30 Cr in an extended Series C funding round led by Gulf Islamic Investments.

Mensa Brands, India’s fastest unicorn to date, has lately been on an acquisition spree, acquiring three brands in 2022 alone. These include: gardening solutions startup Trustbasket, aromatherapy D2C brand Florona and leather brand Estalon.