D2C skincare brand Foxtale has secured Rs 119.5 crore (approximately $14 million) in a new funding round from Panthera Growth Partners (PGP), Matrix Partners, and Kae Capital. This marks the first round of funding for the Mumbai-based company in 2024 and the second in the last two years.
Previously, the skincare startup Foxtale had received $4 million funding in a pre-Series A round from Matrix and Kae Capital in June 2022, following a seed round in August 2021.
Founded by Romita Mazumdar in 2021, Foxtale offers affordable skincare products, including four basic items covering aspects like anti-aging, acne control, and hydration.
Despite being only three years old, the company has been valued at around Rs 790 crore or $96 million after the recent funding round.
Foxtale experienced rapid growth in the last fiscal year, achieving Rs 13.8 crore in operating revenue, a significant increase from Rs 20 lakh in FY22. However, the company’s losses also increased substantially, reaching Rs 18.49 crore in FY23 compared to Rs 2.48 crore in FY22.
The company reported reaching break-even in Q2 of FY24 and aims to become a Rs 1,000 crore brand within the next five years.
Foxtale faces competition from established players such as Sugar Cosmetics, WOW Skin Science, Plum, MamaEarth, Minimalist, and others. The funding received by Foxtale is positive news for the D2C skincare industry, which has seen limited funding activities in recent times.
While Sugar Cosmetics has been pursuing around $100 million in secondary and primary capital, the deal is still pending.
