The Hindu Business Line

Beauty, wellness start-ups rediscover their mojo

- PRIYANKA PANI

Private equity investors and venture capital firms seem to have rediscover­ed their beauty spot.

A day after PE firm TPG Growth invested about ₹100 crore in beauty retailer Nykaa, Samara Capital has acquired about 50 per cent stake in cosmetics company Blue Haven (BH) for an undisclose­d amount. This is also Samara’s second investment in the beauty and wellness segment this year after it announced that it will pump in ₹200 crore into skincare and haircare brand Nature’s Essence.

According to sources, JSW Ventures-backed online beauty products marketplac­e Purplle is all set to raise a substantia­l amount in Series B flunding ater this week. The Mumbai-based start-up had raised about $2.57 million last A $8-billion market, the Indian beauty segment is growing at the rate of 22 % annually

year. Founded in 2011 by Manish Taneja and Rahul Dash, Purplle is an ecommerce platform that offers beauty products and beauty appliances and is a direct competitor to Nykaa, founded by Falguni Nayyar, in 2012.

Changing trend

Lately, there has been a renewed interest among investors towards the Indian beauty and wellness start-ups even as the segment witnessed a dip in investment­s in 2018. According to data from Tracxn, Indian beauty and wellness start-ups raised about $21 million in 2018, a steep decline from $209 million in 2017.

However, the trend has changed in the last few months. Earlier this year, luxury ayurvedic beauty and wellness brand Kama Ayurveda also recieved investment­s from Spanish Fragrance maker Puig.

Unilever Ventures has in the last few months invested in two skin care start-ups — Plum and Pureplay Skin Sciences — that speaks volumes about the potential the Indian beauty and wellness market has in store.

The Indian beauty segment is an $8-billion market, which is growing at the rate of 22 per cent year-on-year. According to an Assocham–MRSSIndia.com joint study report released last year, the segment is expected to touch $35 billion by 2035.

Focus on men

According to experts, growing awareness about brands due to e-commerce, rise in purchasing power, increasing number of women in workforce and rising consciousn­ess among men are the main driving factors in the segment.

More men want to look presentabl­e, and hence, are looking for grooming products. This has also led to a surge in he number of startups and companies focussing on men’s beauty products. To cash in on the trend, Marico acquired Ahmedabad-based Beardo in 2017. Nykaa has also launched Nykaa Men, which offers a range of men’s grooming products from different companies.

 ??  ??

Newspapers in English

Newspapers from India