Personal care brand mCaffeine raises Rs 42 crore in third round of funding

BENGALURU: Pep Technologies, that owns digital-first personal care brand mCaffeine, has raised Rs 42 crore in a Series B funding round from a consortium of investors led by Amicus Capital along with RPSG Ventures and existing investors, Telama Investments as it plans to widen online and offline distribution and expand research and product development to penetrate the market. The four-year old startup last raised funds in June 2019, when it received $2 million in a Series A round of funding from a group of investors led by RPSG Ventures.

Tarun Sharma, cofounder, mCaffeine said, “We will utilise the funds in scaling up our R&D capabilities and invest in expanding our distribution across digital channels, brand building and organisational scale up. We have plans to launch 15-20 products in the next one year.”

Currently, mCaffeine has 20 skin and hair care products in its portfolio that it sells across 18000 pin codes.

Sharma said that this round of funding will help the brand increase its annual turnover from Rs 100 crore to Rs 500 crore in the next three years, adding that the company has surpassed its pre-pandemic revenue run rate.

“We are impressed with mCaffeine’s research-led product development and engagement with consumers across social media. The company has also demonstrated healthy unit economics while delivering high revenue growth,” said Sunil Theckath Vasudevan, cofounder, Amicus Capital.

Majority of the financing in this round has come from Amicus Capital and RPSG Ventures.

Abhishek Goenka, head, RPSG Ventures, said, “mCaffeine has built differentiation around caffeine-based personal care products which is demonstrated in their growth profile and capital efficiency.”

The company counts Apurv Salarpuria, executive director of Salarpuria Group, KRS Jamwal, Tata Industries executive director, Harminder Sahni, founder of Wazir Advisors and Kaushal Aggarwal, chief executive of Avendus Finance among its investors.

Founded by Tarun Sharma and Vikas Lachhwani in 2016, mCaffeine retails products across three categories – face care, hair care and body care on online marketplaces Amazon, Flipkart and Nykaa. It is a direct-to-consumer brand targeted at millennials.

The personal care market in India is set to touch $20 billion by 2035 driven by the rise in disposable income and growing aspirations of people to look good, according to ASSOCHAM. India is a booming industry for this sector that houses leading brands such as Dabur and Godrej to startups including Mamaearth and Wow Skin Science.

Personal care brand mCaffeine raises Rs 42 crore in third round of funding Personal care brand mCaffeine raises Rs 42 crore in third round of funding Reviewed by TechCO on 9/21/2020 Rating: 5

No comments:

ads 728x90 B
Powered by Blogger.