Mumbai-based direct-to-consumer (D2C) skincare startup Foxtale has secured $18 million (approximately Rs 150 crore) in a Series B funding round. This round was led by Singapore-based Panthera Growth Partners, with existing investors Matrix Partners India and Kae Capital also participating. IndigoEdge served as the exclusive financial advisor for the transaction.
What is Foxtale?
Foxtale was founded in 2021 by Romita Mazumdar and has quickly gained recognition in the competitive skincare industry. The startup offers a variety of products, including moisturizers and serums, competing with well-known brands like Sugar Cosmetics, WOW Skin Science, and MamaEarth. Foxtale has set a goal to become a Rs 1,000 crore brand within the next five years.
Expanding Digital Presence
The new funding will be used to expand Foxtale’s digital presence and introduce new product categories. Romita Mazumdar, the founder, said, “We are currently generating Rs 250 crore in gross revenue and aim to reach profitability by FY25. The Series B round will help us grow further, achieving our goal of becoming a Rs 1,000 crore brand.”
Foxtale plans to enter the body care market by launching four new SKUs in July and another category within the beauty and personal care sector by December. The product range is expected to expand from 18 to 25 SKUs by the end of this fiscal year.
Re-entering Offline Markets
The brand is also preparing to re-enter offline markets strategically. Currently, Foxtale is available in 2,500 general trade stores across seven Indian cities. However, the offline presence was reduced last fiscal year due to working capital constraints.
Financial Growth
Foxtale has achieved profitability after marketing expenses and aims for 5% EBITDA profitability by the end of this fiscal year. The brand closed the last fiscal year with Rs 172 crore in GMV sales and targets over Rs 400 crore in the current fiscal year.
Foxtale’s revenue is well-diversified, with 12% from offline channels, 38% from marketplaces, and 50% from its D2C website. However, it was earlier reported that Foxtale’s losses increased to Rs 18.59 crore in FY23 from Rs 2.48 crore in FY22.
