Wow Skin Science looks to raise $75M in funding: Report

Wow Skin Science, a direct-to-consumer (D2C) beauty and personal care brand, is reportedly looking to raise $65-75 million in primary capital from both new and existing investors.

According to a Mint report, The round could value the startup at $400 million, similar to its previous round when GIC invested $48 million in 2022.

Who are the potential investors?

The report said Wow Skin Science has initiated talks with certain Japanese and Middle East-based funds for the new funding round.

The company has appointed investment bank Investec to oversee the fundraising process, while consulting firm KPMG is conducting vendor due diligence.

Existing investors are also expected to participate pro-rata in the new funding round, the report said.

How well Wow Skin Science is performing?

In 2021, ChrysCapital acquired approximately 35% of Wow Skin Science for $50 million, valuing the company at $125 million.

The company has since demonstrated impressive growth, posting a 40-50% increase in revenue in FY24, up from Rs 320 crore in FY23. However, for the financial year ended 31 March 2023, the company's losses had jumped 56% to Rs 213 crore from Rs 136 crore in FY22.

What fueled the growth?

Wow Skin Science reflects the substantial post-COVID-19 growth in India’s beauty and personal care sector, especially in the D2C segment.

Rising disposable incomes and the expansion of quick commerce and omnichannel approaches have fueled this growth.

Founded in 2014 by brothers Manish and Karan Chowdhary, Wow Skin Science specializes in toxin-free beauty products crafted from natural ingredients. Their offerings span skincare, hair care, nutritional supplements, bath and body, and wellness categories.

Wow Skin Science presence

Wow Skin Science's distribution channels include e-commerce platforms, its own website, and physical retail outlets, with around 40,000 retail touchpoints across four brands: WOW Skin Science, WOW Life Science, Body Cupid, and Nature Derma.

Additionally, the company has a presence in the US, the Middle East, and the European Union. Wow Skin Science has been aggressive in expanding both its product categories and geographic footprint.