Asaya a skincare startup focusing on melanin-rich skin, has raised $1.5 million in a seed funding round co-led by OTP Ventures and Huddle Ventures, with additional investment from Eternal Capital.
The funds will be used for research, product development, and market expansion, aiming to grow from 20,000 to over 250,000 consumers in 12 months.
Nykaa's prestige beauty segment has grown at a CAGR of mid-to-late 20% over three years, and Asaya is positioned to capture a share of the growing premium skincare market in India.
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Skincare startup Asaya has raised $1.5 Mn in a seed funding round co led by OTP Ventures and Huddle Ventures, with participation from Eternal Capital.
Founded by Neeraj Biyani, Mandeep Bhatia and Eeti Sharma in 2023, Asaya focuses on products for melanin-rich skin and will use the newly raised funds towards melanin-centric research, product development and expanding market reach.
The startup also aims to increase awareness about the unique skincare needs of Indian skin tone.
“Our products have received an overwhelmingly positive response, indicating strong product-market fit for many items in our lineup. This funding will help us go from 20,000 to over 250,000 consumers in the next 12 months,” Biyani said.
He also added that the company plans to improve their marketing and customer service to provide faster and more informed service to our rapidly growing customer base.
Asaya currently offers more than 11 products and 23 SKUs, retailing through its website and online platforms like Nykaa, Amazon, Flipkart and Myntra.
“There are not enough products developed with the specific skin care needs of the melanin-rich population in mind. Asaya is bridging the gap in the skincare space in India with products, and conversations that will move the needle,” said Sanil Sachar, founding partner of Huddle Ventures.
The brand has dedicated research centres focusing on developing scientifically tested and nature-derived skincare products, with their main office and research centre situated in Bangalore, India.
The Indian beauty and personal care market is expected to reach $30 Bn by 2027, driven by consumers’ willingness to pay more for products that address specific needs and their trade-up to masstige and prestige products.
The growth of the masstige and premium segments is even more pronounced in India, where they are growing two times as fast as the mass market segment, according to a report by Redseer Strategy and Peak XV.
As disposable incomes rise and more women continue to join the workforce, beauty retailers are seeing an upward movement in the prestige and premium segments.
Nykaa has seen its prestige beauty segment grow at a CAGR of mid-to-late 20% over the past three years, now accounting for a third of its gross merchandise value. Nykaa expects this trend to continue, with plans to double its store count to about 400 by 2027
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