The RENÉE Makeover: How Beardo’s Founders Built An INR 350 Cr Beauty Brand

The RENÉE Makeover: How Beardo’s Founders Built An INR 350 Cr Beauty Brand

SUMMARY

Beardo’s early success was fulfilling, but Valani could not shake off his thought: What if they could apply all they had learnt and build something much, much bigger?

Their search for the next challenge led them to the beauty and personal care (BPC) market, poised to reach $28 Bn+ by 2030

The trio rebranded the venture as RENÉE Cosmetics, derived from the Latin word Renatus, which means born-again

In late 2019, Ashutosh Valani and Priyank Shah found themselves in a quandary. They had successfully built Beardo, a category-defining men’s grooming brand, and were about to finalise its acquisition by FMCG major Marico (the exit value was not disclosed). The deal marked the end of one chapter but posed another pressing question: What’s next for these entrepreneurs after reaching the pinnacle?

The Indian male grooming market, once considered a niche segment, saw significant growth over the years, and so did Beardo. However, a JP Morgan report in October 2024 put the market size at INR 15.1K Cr during 2019-23, clocking a CAGR of 6%. It was much lower than the projected annual growth rate of 11%, which could drive the market past INR 31K Cr by 2027-28. Apparently, the scope for growth was capped at the time when Beardo grew and bagged a decent deal.

The founders concurred. “We realised we were playing in a niche,” said Valani. While Gillette cornered half of the razor segment, the rest of the market saw a handful of brands offering everything from deodorants and perfumes to face wash, body wash and haircare products.

Beardo’s early success was fulfilling, but Valani could not shake off his thought: What if they could apply all they had learnt and build something much, much bigger?

Their search for the next challenge led them to the beauty and personal care (BPC) market, poised to reach $28 Bn+ by 2030. Around the same time, Valani reconnected with Aashka Goradia Goble, an actor-turned-entrepreneur and his senior from school. Aashka launched Rene by Aashka Goradia in 2019 (the name was a homage to her mom-in-law), driven by her passion for creating cruelty-free and innovative beauty products.

“As we were transitioning out of Beardo in 2020, this brand struck us as a good opportunity,” said Valani.

Aashka excelled in product development and procurement, but she hit a wall regarding distribution. Balancing an acting career, a home office in Mumbai and the life of a newlywed, she felt it nearly impossible to scale the brand. In contrast, Valani and Shah, though newcomers to the women’s beauty space, brought a wealth of experience from scaling Beardo.

They had a sharp grasp of product-market fit, consumer behaviour, pricing strategies and sustainable scaling. Confident of their ability to fuel rapid growth, they saw an opportunity to combine their business expertise with Aashka’s vision.

“I saw how much heart she put into her products,” he said. “She truly understood the craft but lacked the bandwidth to scale. That’s when it clicked – we could join forces and build something extraordinary.”

Things soon fell into place, and the business emerged as a collaborative effort. “A brand is always bigger than one face. That does not mean diminishing anyone’s role or taking away [the credit]. It simply means adding more [value] and expanding the narrative,” explained Valani.

The trio rebranded the venture as RENÉE Cosmetics, derived from the Latin word Renatus, which means born-again. The business was rebuilt, offering new-age consumers an innovative range of colour cosmetics. The logo, the language, the colour scheme and the overall aesthetics got a complete makeover.

“It’s not about launching just another beauty brand,” said Valani. “RENÉE had to create an outstanding product line to meet people’s needs and aspirations. That’s why we focussed on innovation, developing easy-to-use, fresh and exciting cosmetics.”

The challenges were many. When the Beardo founders joined, the brand only offered eyelash staples, and the first step was to bring in more eye makeup products. “We decided to introduce kajal (kohl) pens at the time of relaunch, a staple for Indian consumers. Even when someone doesn’t want a ‘full beat’ [a fully made-up Insta face], kajal is a go-to for everyone,” observed Valani.

From there, RENÉE made a deep impact with many signature releases such as its Fab 5 lipstick range (five shades in one stick, long-lasting and non-drying) and a nourishing upgrade in the form of skincare-infused makeup. These multi-tasking hybrids have been making waves over the past few years, as makeup puts skincare first to enhance one’s glow.

The next big challenge was Covid-19. The pandemic struck just as the team prepared to relaunch in September 2020. But instead of halting their plans, the founders used the downtime to build on their vision and refine their products.

RENÉE now offers 200+ SKUs under six major categories, spanning everything from eye makeup and lip shades to skincare serums and perfumes. This beauty line is eco-friendly, FDA-approved and cruelty-free, which means products are not tested on animals or contain animal-derived ingredients.

Products are available on its D2C (direct-to-consumer) website, major e-commerce marketplaces, including Amazon India, Nykaa and Flipkart, and more than 1,200 offline stores nationwide. It has also entered overseas markets with a beta run in the US, the UAE and Australia.

The brand, in its new avatar, swiftly captured consumers’ attention. Within the first year, Renee achieved a revenue run rate of INR 1 Cr per month, a 10x rise from its previous monthly revenue of INR 9–10 Lakh.

Fast forward to FY25, and RENÉE has emerged as one of the fastest-growing beauty brands to surpass the INR 400 Cr ARR (annual run rate) threshold. It is on track to hit INR 350 Cr in revenue in the current fiscal year. In FY24, its revenue surged by 97.3% YoY, reaching INR 191.65 Cr from INR 97.15 Cr in the previous fiscal year. However, its expenses also rose by 81.6% to INR 264 Cr, pushing losses up by 88.2% to INR 61.45 Cr.

The RENÉE Makeover: The Beardo Founders’ Blueprint For Building An INR 350 Cr Beauty Brand

These losses were mainly incurred due to heavy marketing expenditures, said Valani, adding that the venture was “nearly profitable” in Q3 FY24. However, the brand’s strategy has always centred on product innovation, retail expansion and ramping up marketing to reach diverse consumer segments in India and abroad. Although growth has been the primary focus, the company is working to optimise operations and hit full-year profitability in FY26.

RENÉE’s rapid ascent was backed by $50.7 Mn (INR 439.3 Cr) funding from marquee investors such as Evolvence India and the Edelweiss Group. The brand’s valuation hit a range between INR 1,200 Cr and INR 1,400 Cr during its INR 100 Cr Series B round in June 2024.

The RENÉE Makeover: The Beardo Founders’ Blueprint For Building An INR 350 Cr Beauty Brand

What It Takes To Build A Beauty Brand: A Deep Dive Into RENÉE’s Playbook

In a recent conversation with Inc42, Valani and the rest of the founding team shared their playbook for achieving success in the highly competitive beauty and cosmetics sector. Interestingly, leading the market is no longer about product quality alone. Undoubtedly, Good quality matters, but brands today must stand up for the right cause, maybe several of them.

Unlike legacy businesses, new-age brands cannot sit out seismic socio-cultural disruptions, skip paying attention to the beauty preferences of value-conscious consumers or ignore the call for innovation that can enhance beauty benefits. Additionally, they must incorporate cutting-edge business strategies and marketing techniques to stay ahead of the competition and resonate with beauty whisperers and the shoppers they influence.

Unsurprisingly, Valani and his team must go beyond the obvious. Nurturing a cruelty-free product line, opting for a product rethink or going through reverse engineering for a better understanding of the beauty market are essential components of their playbook that can drive the brand’s growth for years. Hence, we have distilled the team’s insights shared with us to help D2C startups grow from zero to one.

Identify market gaps and figure out what consumers need

When Aashka launched her cosmetics brand, she began with a few SKUs primarily sold through her website. But as the brand evolved, she and her team dug deeper into the market, looking for product gaps and pain points others had missed. The goal was not mere expansion. The forward-thinking brand focussed on innovation and designed sustainable, science-backed products that resonated with consumers. Here are the four pillars that help RENÉE stay relevant and create value.

Turning insights into groundbreaking products

Perhaps the toughest call as meaningful scaling is not limited to growing SKUs. It is more about knowing your customers. The brand identified two groups through market research, feedback, and direct conversations. The first included makeup enthusiasts frustrated with a market offering no real innovation. The second group featured occasional users who found the typical makeup regime overwhelming. Again, carrying different shades for different occasions was an added hassle.

These insights sparked a groundbreaking idea. RENÉE introduced a three-in-one colour stick, a multifunctional product serving as an eyeshadow, a blush and a lipstick. It simplified beauty applications and made makeup easier and more fun. It was practical, and it was what the market craved. The brand did not stop there. It actively engaged in consumer education, creating tutorials and interactive content.

“Every product we launched came with insights from users. Once we got that right, we kept growing, adding more SKUs, moving faster and doing everything purposefully,” added Valani.

Spotting market gaps

One of the unique offerings came up when RENÉE realised that teens and young women in their early twenties were keen on makeup but lacked products tailored to their age and requirements. Most beauty products cater to mature users, and the rich textures are created to benefit people whose skin is tight, uncomfortable and flaky. They also ensure durability and long wear. But they won’t feel light on the skin and can’t be rapidly absorbed.

In contrast, young people often buy light textures, which are easily absorbed and more suitable for normal to mixed and oily skin. They also provide the bare-skin feel, the preferred style of Gen Z.

Mass-market, off-the-shelf products may pose further problems for young users. For instance, lipsticks may have a firmer or waxier texture to make them long-lasting, but they can feel less comfortable or hydrating. Foundations, too, may prioritise coverage and staying power over a lightweight feel, making them heavier or less blendable.

Recognising the market gap, the brand launched Princess By RENÉE, a line tailored for younger consumers. “We wanted to create something softer, more nourishing and free from harmful chemicals. Makeup infused with skincare, feels good to wear and is fun to use – like cute, hydrating lip balms in appealing packaging,” said Valani.

Keeping quality at the core

RENÉE has an in-house lab and hires biochemists to make formulations. Plus, it has a two-layered QC testing in place. Its products go through the first level at manufacturing sites, and the brand carries out second-level QC testing for quality, consistency and safety. A sample from each batch is then compared in-house with the finally approved product. If they match, the batch is cleared for sale.

Upholding values without fail

“We maintain our ethical stand equally seriously,” said Valani. “We offer a cruelty-free product line, and our ingredients and testing are done accordingly. People often confuse cruelty-free with chemical-free, but they are entirely different. We ensure ethical production while maintaining product efficacy,” he explained.

Be ready to reverse-engineer everything for a 360-degree approach

For the founding team at RENÉE Cosmetics, sticking to a couple of strategies or following a cut-and-dried rule book did not work. It was about playing the game from every angle, a 360-degree approach to thrive in the beauty market.

The process always starts with the consumer. “We have reverse-engineered everything,” said Valani. “First, we would speak to the consumer and identify the market gaps. Then we would come back and ask: What products can fill these gaps? How can we improve an existing offering in terms of formulation, packaging, or both?”

Take the first breakout product, the RENÉE Fab 5, a five-in-one lipstick. As the brand prepared for a relaunch, the team turned to consumers using other brands and posed a simple yet revealing question: What’s really missing in this market?

Interestingly, many people could not pinpoint a gap. They had always accepted the status quo, choosing between a matte and a glossy option and never expecting any other innovation.

That’s when the team had an idea: What if they could combine the top three to five shades into a single, affordable stick? More than reverse-engineering a product, it was rethinking an entire concept. When the idea was floated, reactions varied from intrigue to disbelief, but the scepticism confirmed that the product would be a game changer if the team could pull it off.

After Fab 5 became an instant success, the stage was set for RENÉE’s signature approach – rethinking beauty products from the ground up, breaking the norms and delivering the unexpected. It launched the Madness pH Lipstick, a seemingly black lip colour that changes to a custom pink based on the wearer’s pH level. Next came the Bollywood Filter Primer that instantly mattifies skin for a flawless finish.

When people realised that RENÉE was willing to do crazy things other brands would not, they pitched their ideas inspired by sci-fi movies or futuristic innovations, and the brand worked on those. What started as a product-driven company evolved into a brand defined by boldness and reinvention.

More importantly, it focused on affordability, a critical component for succeeding in a price-conscious Indian market. “We are not a premium brand; we offer a mass-premium product range. Hence, every rupee spent on our products has to feel worthwhile. We want to give our customers something they will love and return for more,” said Valani.

By late 2021, the brand expanded offline with shop-in-shop models to drive sales and stay close to its audience. Those in-person interactions provided valuable feedback as RENÉE continued to listen, disrupt and redefine one groundbreaking product at a time.

Build a moat around the business to stay ahead in the fast lane

The BPC industry is highly competitive, to say the least. But it has also seen remarkable growth over the past years, driven by increasing consumer spending and the rise of value-conscious shoppers eager to explore new brands without bias. However, mere copycats will not be able to challenge innovation-driven companies in the long run.

“I would say it’s easy for a brand to replicate a lipstick shade. But copying an entire concept? That’s a different ballgame,” observed Valani.

He also attributed RENÉE’s competitive edge to its agility. “Because we are smaller, we can move much faster. And our cost of failure is minimal compared to big, established players. Larger brands undergo extensive product-market research, fit assessments and formulation trials, which take 18 to 24 months. Our product already peaked or even passed the trend cycle by the time they launch.”

Again, trendsetters can become the torchbearers, and no one can rob them of due credit. “Take Lakmé’s 9-to-5 lipsticks. Soon after, Colorbar, Maybelline and SUGAR had their versions. The packaging, price points and formulations might differ, but when something new gains traction, every brand wants in,” he said.

Yet, not every innovation is easy to replicate. “Consumers have different needs, and not every brand can cater to all of them. Our first launch, the Fab 5 Lipstick, remains unmatched even today. Then there’s the Pore Minimizing Primer. It has been in the market for more than two years, and no one has been able to crack it. The same goes for the Madness pH Lipstick,” a proud Valani pointed out.”

For him, the beauty industry mirrors fashion, where relevance hinges on reinvention. “Trends shift constantly, just like clothing. If you are not evolving, you will become obsolete. We need constant experimentation and innovation to stay ahead of the curve. That’s the moat we have built.”

Production timelines are critical, so plan inventories carefully

Beauty brands often struggle to cope with the cost and complexities of maintaining an optimised inventory. However, the golden rules are simple enough. Never get into a situation where demand and inventory are out of balance. “Skin-related products typically take three to four months to manufacture. As for colour-based products, the timeline can be three to six months. Therefore, planning inventory is critical for smooth operations,” said Valani.

He then detailed how the team decides which products to keep or drop. There is a strategy called refresh. A product is considered a low-performing SKU if it does not meet the minimum order quantity within a year. In such cases, it is slowly phased out. However, if there is a loyal audience for that product, it is produced in small batches.

The team uses several systems to manage the backend. These include customised enterprise resource planning and point-of-sale systems. These tools help track stock levels and support inventory planning for the entire year. RENÉE keeps an eye on potential bumps and adjusts inventories.

He gave an example. “Body lotions and lip balms don’t sell well in summer but are popular in colder months. Over the years, understanding these seasonal trends has been crucial for inventory planning and management.”

Eventually, it is a collective effort, with multiple teams working in sync, coordinating everything, from production timelines to marketing strategy, to create an efficient operational plan.

Keep trends in sight & create a marketing playbook

Valani stressed the importance of staying tuned to regional trends, explaining how data and experience guide the brand’s decision-making. When RENÉE launched a set of red, brown and pink lipsticks, it spotted some clear regional preferences. Pinks were flying off the shelves in the North, but they barely moved in the South. Meanwhile, the browns were piling up in the North, but the South had an excellent demand for them. So, the company adjusted its distribution, sending pinks to the North and browns to the South.

“Trends are not universal across the country, and India is not one market. Regional preferences define product demand, and you have to stay on top of what’s trending in each area to plan accordingly,” he explained.

“Markets give off cues, but you have to listen to them. No trend is a sure bet, but experience sharpens your intuition. We have learnt to trust our gut. One can’t hit a six every time, but we usually get it right.”

Content is another route to marketing success. “Our content assures customers that they are buying a premium brand at an affordable price. It’s like buying a Mercedes but paying for a Maruti,” chuckled Valani.

Talking about marketing wins, Valani points to the power of influencers and celebrity collaborations. “Fashion in India is driven by movie stars, YouTubers and other public figures. But timing also matters a lot. We have always been careful about choosing the right person at the right moment. We reach a diverse audience by working with a mix of influencers – Bollywood stars, YouTubers and regional celebrities.”

Will RENÉE Emerge As The Mothership Of Modern Indian Makeup Products?

Although RENÉE revels in an innovation makeover, it is on track to hit the profit button and dive deep into where the money is. The brand will expand its shop-in-shop presence to 1,500 outlets by FY25, driving its online and offline retail push. It also focusses on sustainable growth, unlike what many startups did when FOMO dollars from VCs flowed in before a harsh funding winter.

He seemed unfazed when asked if the brand’s product journey was gaining momentum too fast for a zero-to-one venture still looking for stronger financials.

“When you launch a product, you always believe it should be a hit; it should be No. 1. But sometimes, you know, you are launching certain things as a foundation for the company. They may not be your star players, but they are essential to round out your offerings. We have several products like that in our lineup. They may not be top sellers, but we must keep them because they serve a purpose. We don’t overinvest or push them aggressively, but they are crucial in building a comprehensive product portfolio.”

The most difficult challenge until now?

“The rains, of course,” laughed Valani. “Otherwise, the business is in a strong position. Demand is growing. And we are focussing on scaling up.”

Meanwhile, users and investors may keep tabs on this born-again colour cosmetics brand – the first group hoping to sample many off-beat and intriguing products and the second looking for an innovation-first BPC venture going from strength to strength and putting on a new glow.

[Edited By Sanghamitra Mandal]

Note: We at Inc42 take our ethics very seriously. More information about it can be found here.

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