Exclusive: Surge-backed Belora Cosmetics may shut down

Cosmetics brand Belora appears close to hitting a dead end, not having raised follow-on capital or attract potential buyers. According to two Entrackr sources, the Gurugram-based company is likely to shut shop.

“Belora tried to raise capital from new and existing investors including Surge but the efforts didn’t materialize,” said one of the sources requesting anonymity. “The company also explored consolidation opportunities in the cosmetic space and held discussions with several players.”

Sources outlined that the M&A talks also did not end in a deal which has led to the company likely winding up operations completely. 

The shutdown also seems imminent from its website which has not been functioning for the past few weeks. “The Site is getting upgraded, we will relaunch soon. Thank You,” reads a message on its website.

Founded in 2019 by Ainara and Akaljyot Kaur, the company raised a pre-Series A round from Peak XV Partners’ Surge, DSG Ventures and a few angel investors. It was part of the fifth cohort of the accelerator program Surge.

Surge declined to comment on the story while queries sent to Belora’s co-founder and CEO Ainara Kaur and DSG on Tuesday didn’t elicit response.

Belora used to offer vegan and toxin-free makeup and skincare products, including lipsticks, moisturizers, kohl and eyeshadows. As per the company, it focused on finding ingredients that follow international certifications and claimed to be the first certified makeup brand across Europe and Asia.

Last year, the company also said that it was present in 100 stores-in-stores and planned to open another 100 in the next couple of months. In September last year, CEO Kaur said that Belora aims to be a Rs 500 crore brand in terms of annual run rate in the next 3-4 years. The firm’s annual revenue stood at Rs 15 crore in FY22. It is yet to file its FY23 numbers.