Ecotrail Personal Care Pvt. Ltd, which runs clean beauty platform Iba Cosmetics, has secured $10 million (around Rs 80 crore) from Singapore-based beauty and personal care products company Believe Pte Ltd, in a Series B capital raise. Believe has also bought over 50% stake in Iba Cosmetics, as per people close to the development.
The Ahmedabad-based startup will use the fresh funds to expand its geographical footprint and brand scale up.
Founded by Mauli and Grishma Teli in 2014, Iba Cosmetics claims to be India’s first halal and PETA-certified vegan cosmetics and personal care brand. It competes with the likes of Nykaa, Mamaearth and Wow Skin Science, in the personal care space.
“This strategic alliance with Believe is going to help us with distribution and scale not only within India but in international markets as well, thus ensuring that a new and much larger segment of halal and vegan consumers get to experience the brand,” said Mauli Teli, co-founder and chief executive at Iba Cosmetics.
“Combining our respective strengths, we thus project brand Iba to deliver a 4x growth over the next 12 months. Believe targets to grow to a $100 million revenue global conglomerate by March 2023. The company has grown more than 100% y-o-y over the last one year and expects to continue that growth rate,” said Afroz Hossain Arefin, business head, Believe Pte Ltd Singapore.
Established in 2019, Believe operates multiple brands in the health and beauty space. So far, the firm has raised $80 million from Accel, Jungle Ventures, IIFL and Venturi Partners. It supplies products in nine countries including India, Bangladesh and Saudi Arabia, among others.
The domestic online beauty and personal care market is expected to grow at 60% annually between 2016 and 2025, according to brokerage Motilal Oswal Financial Services Ltd.