Spanish Brand Puig Acquires Majority Stake In D2C Startup Kama Ayurveda

Spain-based beauty and lifestyle brand Puig on Wednesday (September 14) said it has acquired a majority stake in ayurvedic D2C brand Kama Ayurveda. However, it didn’t disclose the financial details of the deal.  

The Spanish company had acquired a minority stake in Kama Ayurveda for INR 100 Cr in 2019.

Puig will continue its endeavour to boost Kama Ayurveda’s leadership in the Indian market and expand its geographical footprint in international markets, including the UK in 2023, the company said in a statement.

Besides, it will also offer expertise to the ayurvedic D2C startup in brand building, tech, and skincare and perfumery categories.

Founded in 2002, Kama Ayurveda sells a host of organic beauty products across skin, hair and  body categories. The startup partnered with Tamil Nadu-based Arya Vaidya Pharmacy in the initial years to manufacture ayurvedic products.

“We are proud to be partnering with Puig, which has helped accelerate Kama Ayurveda’s growth and expansion across India. By leveraging the wealth of Puig experience in nurturing founders and growing global beauty and skincare brands, we will together bring the experience of authentic ayurvedic beauty and wellness to new audiences,” said Vivek Sahni, co-founder and CEO of Kama Ayurveda. 

Kama Ayurveda currently operates 54 exclusive stores in India and plans to increase it to 60 stores by the end of 2022.

Besides the D2C model, Kama Ayurveda also follows the shop-in-shop retail concept and has reportedly partnered with 70 outlets including Shoppers Shop. During the pandemic, the startup permanently closed eight stores that were set up around airports.

In the financial year 2020-21, Kama Ayurveda reported operating revenue of INR 96, Cr while its loss stood at INR 24 Cr, according to Tofler. 

Puig, set up in 1914, is a fashion and beauty brand. It sells a slew of products in three beauty categories–fragrances, makeup and dermo-cosmetics. 

Puig’s product portfolio includes Carolina Herrera, Paco Rabanne, Jean Paul Gaultier, Dries Van Noten, Nina Ricci, Byredo, Penhaligon’s, L’Artisan Parfumeur, Loto del Sur, the Charlotte Tilbury, among others. 

Kama Ayurveda represents a distinctive addition to Puig’s product portfolio and strengthens its wellness category, the statement said.

“India represents an incredibly exciting opportunity for Puig. With this investment, we will continue our strategy of consolidating Kama Ayurveda’s strong domestic presence and of pursuing compelling opportunities in key markets abroad,” Marc Puig, chairman and CEO of Puig, said.

Puig has a presence in more than 150 countries and has offices in 29 countries. 

Ayurvedic D2C brands have seen a slew of fundraising activities in the last nine months. While NirogStreet raised $4 Mn in December 2021, TAC bagged $3 Mn in March this year. 

According to a Research And Markets report, the Indian ayurveda market, which was pegged at INR 30K Cr in 2018, is expected to increase to INR 71K Cr by 2024, growing at a CAGR of nearly 16.06% by 2024.