Skincare brand Foxtale secures $14 mn in funding

Foxtale, a direct-to-consumer (D2C) skincare brand, has recently secured a substantial investment of Rs 119.5 crore (approximately $14 million) in its latest funding round. This capital infusion comes from prominent investors, including Panthera Growth Partners (PGP), Matrix Partners, and Kae Capital. Notably, this marks the first funding round for the Mumbai-based company in 2024, following a previous round two years ago.

In its earlier stages, Foxtale had garnered $4 million in a pre-Series A round from Matrix Partners and Kae Capital in June 2022, building on a seed round secured in August 2021. Founded by Romita Mazumdar in 2021, Foxtale distinguishes itself as a budget-friendly skincare brand offering four fundamental products. Its product line addresses various skincare needs, including anti-ageing, acne control, and hydration.

According to insights from TheKredible, a startup data intelligence platform, Foxtale, now in its third year of operation, has achieved a valuation of approximately Rs 790 crore or $96 million following the recent funding round.

Despite being a relatively young player in the skincare market, Foxtale has demonstrated remarkable growth, particularly in the previous fiscal year. The company reported a significant surge in operating revenue, reaching Rs 13.8 crore, a notable increase from the Rs 20 lakh recorded in FY22. However, this growth was accompanied by a considerable rise in losses, which escalated to Rs 18.49 crore during the fiscal year ending March 2023, compared to Rs 2.48 crore in the preceding year.

Foxtale, nevertheless, announced achieving break-even status in the second quarter of FY24 and aims to solidify its position in the market further, setting a target to become a Rs 1,000 crore brand within the next five years.

As Foxtale forges ahead in the competitive landscape of skincare brands, it faces established rivals such as Sugar Cosmetics, WOW Skin Science, Plum, MamaEarth, and Minimalist. The injection of funds into Foxtale is a testament to its potential and a positive development for the D2C skincare ecosystem, which has seen limited funding activities in recent times.

In the broader context, Sugar Cosmetics has been actively pursuing a significant capital infusion of around $100 million through secondary and primary funding. However, this anticipated deal has yet to materialize, underscoring the significance of Foxtale’s successful funding round within the industry.