Mumbai-based D2C skincare startup Foxtale raises $18M in a Series B round

Mumbai-based direct-to-consumer (D2C) skincare Foxtale has raised $18 million (approximately Rs 150 crore) in a Series B funding round led by Singapore-based Panthera Growth Partners. 

The round also saw participation from existing investors, including Matrix Partners India and Kae Capital. IndigoEdge acted as the exclusive financial advisor to Foxtale on this transaction.

Prior to this round, Foxtale reportedly raised approximately $14 million from Singapore-based Panthera Growth Partners.

What does Foxtale do?

Founded in 2021 by Romita Mazumdar, Foxtale has quickly made a name for itself in the competitive skincare sector. The startup offers a range of products, from moisturizers to serums. It competes with established names like Sugar Cosmetics, WOW Skin Science, and MamaEarth.

Despite the fierce competition, Foxtale aims to become a Rs 1,000 crore brand within the next five years.

Expanding digital footprint

The startup plans to use the raised capital to expand its digital footprint and introduce new product categories.

Romita Mazumdar, the founder of Foxtale, said, "At present, we are generating Rs 250 crore gross revenue and will be hitting profitability in FY25. So, the Series B round will be used to further augment our growth, profitability, and take Foxtale from a Rs 250 crore to a Rs 1,000 crore brand."

Mazumdar also highlighted plans to enter the body care category by introducing four new SKUs in July and another category within the beauty and personal care (BPC) sector in December.

Foxtale plans to expand its product range from 18 SKUs to 25 SKUs across skincare and body care categories by the end of this fiscal year.

The brand is also set to re-enter offline markets strategically. Currently, it is present in 2,500 general trade stores across seven cities in India, but it reduced its offline presence last fiscal year due to working capital constraints. 

Financial growth

According to Mazumdar, Foxtale has achieved profitability post-marketing expenses and is aiming for 5% EBITDA profitability by the end of this fiscal year. 

The brand closed the last fiscal year with Rs 172 crore GMV sales and is targeting over Rs 400 crore in the current fiscal year.

Notably, Its revenue streams are diversified, with 12% from offline channels, 38% from marketplaces, and 50% from its D2C website.  Earlier, Entrackr reported that Foxtale's losses increased to Rs 18.59 crore in FY23 from Rs 2.48 crore in FY22.