Mumbai-based skincare brand Foxtale raises $14M from Panthera Growth Partners, others

Mumbai-based direct-to-consumer (DC) skincare brand Foxtale has raised approximately $14 million in a new funding round led by Singapore-based Panthera Growth Partners.

Panthera, known for its investments in Indian consumer startups like BigBasket, Pepperfry, and Zivame, spearheaded this round. The funding round also saw participation from Foxtale's existing backers, Matrix Partners India and Kae Capital. 

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.

How well Foxtale is performing financially?

Foxtale's journey has been marked by significant growth, with operating revenue reaching Rs 14 crore in its first full year. However, the path to expansion has not been without its challenges, as evidenced by a net loss of Rs 18 crore due to investments in branding and marketing.

The startup's strategy for the future includes leveraging the latest round of funding to further solidify its market position and compete with well-established players in the skincare industry.

The future of Indian skincare market 

According to Statista, the Indian skincare market is set to generate revenue of approximately $9.88 billion in 2024. This market is on a growth trajectory, with an expected annual growth rate of 2.60% from 2024 to 2028. When we look at the global landscape, the United States is leading in skincare revenue, projected to reach $24.3 billion in 2024. Focusing on India, the per capita expenditure on skincare is anticipated to be $6.85 in 2024. 

Additionally, luxury skincare products are predicted to make up a significant portion of the market's sales, although the exact share of luxury versus non-luxury revenue isn't clearly defined. The Indian skincare market is also witnessing a surge in demand for natural and Ayurvedic products, indicating a growing consumer preference for traditional remedies and organic ingredients.