Mumbai-based direct-to-consumer (D2C) skincare brand Foxtale has raised $4 million (around Rs 30.8 crore) as a part of its pre-Series A round led by Matrix Partners India, with participation from existing investor Kae Capital and some other angel investors.
The startup plans to use the fresh funds to expand its product range, hiring senior management and in scaling the business across multiple touch points.
Founded in 2021 by Romita Mazumdar, Foxtale focuses on formulations and unique ingredient processes for innovation in skin care for women. Mazumdar is a UCLA graduate and was an investment banker in San Francisco earlier.
"Low customer repeat rates is a big issue in the Indian skincare industry. It was clear that efficacy was a big problem for skincare enthusiasts in India and we had to solve it. Our focus on understanding our customer’s needs & product innovation has enabled us to establish an early product-market fit. However, there is still a long way to go,” said Romita Mazumdar, founder and chief executive officer, Foxtale.
Incorporated in 2006, Matrix Partners India has over the years changed from a quasi-private-equity investor to a conventional venture capital firm with a focus on tech startups.
The venture capital firm, which was started by Avnish Bajaj and Rishi Navani, had launched its first fund with a corpus of $150 million and later topped it up to $300 million.
“The beauty and personal care market in India is growing fast and is expected to reach $28 billion by 2025. At Matrix, we continue to be excited about backing new-age consumer brands and Foxtale is our tenth investment in the sector,” said Rajat Agarwal, managing director, Matrix India.
Mazumdar added that the firm aims to build a consumer-first brand where growth and product have equal importance.
“Foxtale is different from other skincare brands. Its focus on high efficacy and the vigorous testing they conduct before launching a product is unlike any other. It sources 80% of its ingredients from premier labs across the globe,” said Sunitha Vishwanathan, partner, Kae Capital.
In December last, Foxtale raised Rs 5.5 crore ($730,200) in its seed funding round ahead of its entry into the market.
