Indian cosmetic major Lotus Herbals Pvt. Ltd has picked up 25% stake in clean beauty direct to consumer (D2C) brand Conscious Chemist for an undisclosed amount. This is the third consecutive investment by Lotus Herbals in the new age Indian beauty and D2C brand segment.
Conscious Chemist is a three-year-old brand, operated by Delhi-based Era Botanics Pvt Ltd, that offers functional skincare range of assembled products spread across categories spanning face care, eye care and body care.
“We appreciate the vigour, exuberance and dynamism that Conscious Chemist brings and will provide them tangible access to Indian and global markets, technological and marketing mentorship that will help in propelling its growth over the next five years,” said Nitin Passi, joint MD at Lotus Herbals.
The acquired company claims that its products are ethically produced using sustainable packaging and never tested on animals. As a socially responsible brand, a part of all purchases goes towards Reef Watch India for marine life restoration in the Indian Ocean.
"This investment from Lotus will help us fuel our commitment to launch category-creating innovative products, drive consumer behaviour change through education about performance-driven skincare solutions and expand our national and global footprint,” said Prakher Mathur, co-founder & COO at Conscious Chemist.
Lotus Herbals has struck a few acquisitions in the new-age beauty space in the recent past. In November last year, it picked up 32% stake in Fixderma India Pvt. Ltd, owner of the Fixderma and FCL brand of dermaceuticals. In 2020, it had bought certified organic Ayurveda brand Soul Tree.
Launched in 1993, Lotus Herbals competes with the likes of Himalaya Herbals, Biotique, Forest Essentials and Kama Ayurveda in the ayurveda-based personal care product market.
The company's brands and products are sold in more than 16 countries. In India, Lotus Herbals retail range reaches 700 cities and towns through over 1,200 distributors. It is said to be available at over 150,000 leading retail outlets and 35 exclusive brand outlets.
Fundraises in the broader beauty and personal care segment have also risen over the last few months. VCCircle had reported that skincare wellness brand WOW Skin Science, backed by ChrysCapital, was in talks to raise $50 million at a valuation of nearly $400 million. Another cosmetics brand SUGAR, operated by Vellvette Lifestyle Pvt Ltd, was eyeing to raise $60 million at a valuation of $500 million, VCCircle had reported.
Purplle had not only recently secured $34 million from a Sequoia affiliate, but also recently bought cosmetics and skincare brand, Faces Canada, which was previously owned by Sequoia Capital India and run by a management team. Sequoia Capital, meanwhile, recently invested in another personal care company Honasa Consumer Pvt Ltd, which owns brands like Mamaearth and The Derma Co, at unicorn valuation.