Wow Skin Science looks to raise $75 million in fresh funding

  • The company is in initial talks with Japanese, Middle East investors for the new funding round, as it looks to accelerate its expansion plans.

Sneha Shah
First Published21 May 2024
The company has posted 40-50% revenue growth in FY24, up from  <span class='webrupee'>₹</span>320 crore in FY23.
The company has posted 40-50% revenue growth in FY24, up from ₹320 crore in FY23.(istockphoto)

Wow Skin Science, a direct to consumer (D2C) beauty and personal care brand, is looking to raise $65-75 million in primary capital from both new and existing investors. 

The company is likely to secure funding at its previous round's valuation of $400 million, when GIC had invested $48 million in 2022, said two people in the know. 

“The company has initiated talks with certain Japanese and Middle East-based funds for a new funding round,” one of the two people said. “It will be raising capital at a flat valuation, which in this market is also great.”

The company has appointed investment bank Investec for the fundraising process, while consulting firm KPMG is conducting vendor due diligence, said the second person. “It is early days, the final contours of the fund raise will be decided in months to come.” 

The company’s existing investors are likely to invest pro-rata in the new funding round, he added.

A Wow Skin Science spokesperson declined to comment. Emailed queries sent to Investec and KPMG did not elicit any response.

In 2021, ChrysCapital had acquired about 35% in Wow Skin Science for $50 million, valuing the company at $125 million

The company has posted 40-50% revenue growth in FY24, up from 320 crore in FY23, said the first person. “As it contains its burn and gets closer to profitability, there is investor interest.”

Firm reflects substantial post-covid growth in India's beauty and personal care sector

Wow Skin Science reflects the substantial post-covid-19 growth in India's beauty and personal care sector, especially in the D2C segment. Rising disposable incomes, and the expansion of quick commerce and omnichannel approaches, have fuelled this growth.

Established in 2014 by brothers Manish and Karan Chowdhary, the company specializes in toxin-free beauty products crafted from natural ingredients spanning skin, hair, nutritional supplements, bath and body, and wellness categories.

Also Read: A sunscreen for your every need

Its distribution channels include e-commerce platforms, its own website, and physical retail outlets, with around 40,000 retail touchpoints across four brands: WOW Skin Science, WOW Life Science, Body Cupid and Nature Derma. 

Wow Skin Science is also present in the US, the Middle East, and European Union. The company has so far been aggressive in expanding its product categories as well as its geographic footprint. 

Also Read: WOW Skin Science's co-founder on mentors, skincare, and more

However, for the financial year ended 31 March 2023, the company's losses had jumped 56% to 213 crore from 136 crore in FY22. 

It competes with with the likes of Plum, EarthRhythm, Juicy Chemistry, Organic Harvest, mCaffeine, Beardo, Mamaearth and Bombay Shaving Co. in the Indian market.

The beauty and personal care sector are witnessing considerable investor interest. For instance, online beatuty store Purplle raised $100 million from Abu Dhabi Investment Authority (ADIA) in April, while Sugar Cosmetics is in talks to close its new round. 

  

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