Foxtale: Skincare brand Foxtale raises $18 million from Panthera Growth, others

Direct-to-consumer (D2C) skincare firm Foxtale has raised $18 million (Rs 150 crore) in a funding round led by Singapore-based Panthera Growth Partners.The funding round also saw participation from existing investors Matrix Partners India and Kae Capital. About $15 million of the amount was in primary funding, the rest is secondary. The firm raised a total of over $7 million in funding prior to the latest round, including $4 million in a funding round co-led by Matrix and Kae in June last year.

Foxtale was launched in 2021 by Romita Mazumdar, a former executive at Mumbai-based investment firm A91 Partners. The firm currently specialises in face care products.

The funds raised will primarily be used in expanding into new categories, Mazumdar said, including the body care category that includes products like lotions and body wash. “As a category, body care is picking up as we see consumers focusing on things like moisturisation and sunscreen,” she added.

Foxtale is currently at a gross revenue run rate of Rs 250 crore and is looking to close FY25 with Rs 400-450 crore in revenue, Mazumdar said. The firm is also looking to turn Ebitda (earnings before interest, taxes, depreciation and amortisation) profitable in FY25. In FY24, the firm made about Rs 170 crore in revenue, she added.

About 50% of the firm’s revenue comes from its own website, another 40% from online marketplaces and 10% from offline general trade stores where it sells its products.

“As a growth equity investor focused on building profitable, scalable businesses, we are thrilled to partner with Foxtale. Romita and her team have built an incredible business in a short time with a sharp focus on product and innovation,” said Shilpa Kulkarni, founder and managing partner of Panthera Growth Partners.Panthera Growth Partners has earlier backed Indian consumer startups such as BigBasket, Pepperfry and Zivame, while Matrix Partners has invested in several D2C startups, including The Whole Truth, Damensch and Country Delight. Kae Capital has backed startups like Healthkart.

In the skincare segment, Mumbai-based Foxtale competes with brands such as Peak XV Partners and Unilever Ventures-backed Minimalist, Vertex Ventures-backed Pilgrim and A91 Partners-backed Plum. Listed firms Nykaa’s Dot & Key and Honasa Consumer’s Mamaearth and The Derma Co also compete in this segment.

“We only have 18 SKUs and we want to focus on delivering high efficacy and quality products to customers that inspire brand loyalty… we already see about 50% of our revenue come from repeat customers,” Mazumdar added.