Beauty startups see return of VC interest

AFTER NEARLY TWO years of muted deal making, direct-to-consumer beauty sector is beginning to see a revival in venture capital interest, with a clutch of young brands raising fresh fundings over the past few months.

- AYANTI BERA

At least seven startups — Moxie, Skininspired, Conscious Chemist, Fae Beauty, Krieya, Antinorm and Secret Alchemist — have closed funding rounds between November and January, signalling a cautious return of investor confidence.

Investors, however, say the rules of the game have shifted since the last funding boom. Capital is now flowing towards brands that demonstrate repeat-led growth, tighter cost controls and clearer paths to profitability, rather than those chasing scale through aggressive influencer-led marketing.

"There is definitely a meaningful resurgence in VC confidence in the D2C beauty category," Archana Jahagirdar, founder and managing partner at Rukam Capital, which has backed brands such as Pilgrim, Fraganote and Antinorm, said. "This revival is driven not by hype, but by tangible improvements in market dynamics, consumer behaviour and operational maturity."