D2C skincare brand Foxtale scoops up $14 Mn in new round

D2C skincare brand Foxtale has raised Rs 119.5 crore (approximately $14 million) in a new round from Panthera Growth Partners (PGP), Matrix Partners, and Kae Capital. This is the first funding round for the Mumbai-based firm in 2024 and the second in the past two years.

Previously, the startup had raised $4 million in a pre-Series A round from Matrix and Kae Capital in June 2022 and a seed round in August 2021.

Founded by Romita Mazumdar in 2021, Foxtale is a low-cost skincare brand that launched four basic products. Its product portfolio covers anti-aging, acne control, and hydration aspects among others.

According to the startup data intelligence platform TheKredible, the three-year-old company has been valued at around Rs 790 crore or $96 million (post-allotment of the new round).

Foxtale grew at a scorching pace in the last fiscal year and posted Rs 13.8 crore in operating revenue against Rs 20 lakh in FY22. However, the firm’s losses soared 7.5-fold to Rs 18.49 crore during the fiscal year ending March 2023 as compared to Rs 2.48 crore in FY22.

The company claimed that it hit break even in Q2 in FY24 and intends to become a Rs 1,000 crore brand in the next five years.

Foxtale will compete with well established players like Sugar Cosmetics, WOW Skin Science, Plum, MamaEarth, Minimalist and several others. Foxtale’s funding is good news for the D2C skincare ecosystem which didn’t see much funding activities in the past year. Sugar has been eyeing to score around $100 million in secondary and primary capital but the deal is yet to be materialized.