Clean beauty marketplace Vanity Wagon has raised around $2 million in a pre-series A funding round co-led by Agility Ventures Partners and Lotus Herbals Private Limited.
The round, which now values the beauty products marketplace at $8 million, also saw participation from Inflection Point Ventures, Venture Catalysts, and HNIs.
The Delhi-based startup will use the funds to invest in brand building, expanding its private label portfolio, growing offline retail, and ploughing money into technology, marketing and sales-driven strategies.
Vanity Wagon had raised $1 million in a 2021 seed funding round led by Inflection Point Ventures. The round also saw participation from Venture Catalysts, Lotus Herbals, existing investors Agility Ventures and a consortium of HNIs (advised by Instarto).
The e-commerce platform sells brands such as Arata, Face Rituals, Enn, Sadhev, The Momo’s Co., and Lotus Organics, among several others. The company has onboarded over 350 brands on the portal, 15% of which are international labels.
Launched in 2018, Vanity Wagon was co-founded by Naina Ruhail, Prateek Ruhail, and Sahil Shrestha.
“Vanity Wagon deploys the latest technologies in assembling the largest clean beauty community and we are building a holistic company with several revenue streams around beauty and also have the largest team in the clean beauty marketplace segment. Vanity Wagon aims to be an ₹500 crore company in the next two years,” the company said in a statement.
To be sure, India’s beauty and personal care is expected to reach ₹2 trillion by 2025; meanwhile the online beauty and personal care market is growing at an even faster pace clocking at a CAGR of 60% between 2016 and 2025, according to a 2021 report by Motilal Oswal Financial Services Limited.
Growth will be driven by a higher propensity to shop online owing to increased internet and smartphone penetration as well as more convenient payment infrastructure (UPI), apart from a largely millennial and Gen-Z population base with aspirations and growing disposable incomes, according to estimates by Motilal Oswal Financial Services. Nykaa is estimated to control 35% of the online beauty and personal care market.
“Our vision is to build a sustainable and legacy brand in the beauty segment which will only be strengthened by this investment. Furthermore, our strategy to go omnichannel, co-own more clean beauty brands, and expand internationally is what a part of this investment will be deployed in,” said Naina Ruhail, Director and Co-CEO, Vanity Wagon.
Vanity Wagon allows investors an opportunity to be a part of one of the fastest-growing industries i.e. beauty, said Dhianu Das, co-founder, Agility Ventures.
“The industry has seen several unicorns and also several companies that have outgrown the market constantly, and still, the market continues to grow. This signifies a strong future for not only beauty but for commerce as a whole,” said Das.
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