WOW Skin Science In Talks To Raise $75 Mn: Report

SUMMARY

WOW Skin Science is said to be looking to raise up to $75 Mn at a flat valuation from new and existing investors

The company reported a 15.5X jump in its net loss to INR 135.83 Cr in FY22

The number of online beauty shoppers in India will cross the mark of 122 Mn by FY25 as per Inc42 analysis

D2C skincare brand WOW Skin Science, which counts GIC and ChrysCapital among key investors, is reportedly in talks with existing and new investors to raise fresh capital at a flat valuation.

According to a Mint report, the Bengaluru-based startup is looking to raise $65 Mn-$75 Mn in primary capital at a valuation of $400 Mn, the same valuation as its previous round when GIC infused $48 Mn in 2022.

WOW is said to be in talks with Japanese and Middle East-based funds for the round.

“The company has appointed investment bank Investec for the fundraising process, while consulting firm KPMG is conducting vendor due diligence. It is early days, the final contours of the fund raise will be decided in months to come,” the report quoted one of the sources as saying.

Founded in 2014 by Karan Chowdhary and Manish Chowdhary, WOW Skin Science claims to formulate products with natural ingredients, and free from sulphates, silicones, mineral oils, parabens and artificial colouring. The product line includes skincare, haircare, bathing, fragrance and nutrition products.

The brand competes with the likes of Plum, Honasa, Good Glamm Group, The Ayurveda Co, and a host of other players in the BPC category, including new entrants such as Gabit and The Minimalist.

According to the company’s MCA filings, it reported a total income of INR 273.01 Cr in FY23 against INR 343. 94 Cr a fiscal year ago. Loss grew to INR 213 Cr from INR 135 Cr in FY22.

Within the D2C space, beauty, skincare and personal care brands are gathering the most traction thanks to omnichannel distribution as well as the increasing adoption of quick commerce by consumers. According to Inc42 analysis, the estimated number of online beauty shoppers in India will cross the 122 Mn mark by FY25.

“In the last 18 months, we have been recalibrating our story, with a significant focus on brand marketing rather than performance marketing. After all, a brand’s products are manufactured in a factory, but brands are built in the minds of consumers,” cofounder Manish Chowdhary said in a recent interaction with Inc42.

The company’s products have a presence in more than 200 Indian cities and has expanded itself to 22 countries, with a focus on the US and South Asia as anchor markets. In 2022, it also expanded to the UAE market and in 2023 to Saudi Arabia.