Lotus Herbals Launches
$50 Million Fund
to Invest in Beauty Startups

Lotus Herbals Launches $50 Million Fund to Invest in Beauty Startups

In a strategic move to bolster innovation in the beauty and wellness sector, Lotus Herbals has announced the establishment of a $50 million fund dedicated to investing in emerging beauty startups. This fund aims to identify and support new-age beauty and wellness brands, leveraging Lotus Herbals’ market expertise and resources to propel them towards success.

This initiative is part of Lotus Herbals’ broader strategy to expand its footprint in the dynamic beauty and personal care market. The company has been actively investing in the sector, acquiring stakes in various innovative brands. Notably, Lotus Herbals recently acquired a 32% stake in Fixderma India, a dermaceutical brand, and a 25% stake in Conscious Chemist, a clean beauty direct-to-consumer brand​ ​.

Lotus Herbals is not alone in this endeavor. Other cosmetic giants have also been setting up funds and investing in beauty startups to stay competitive and tap into the rapidly evolving consumer preferences. For instance, Nykaa, a leading beauty e-tailer, has been actively acquiring brands such as Dot & Key and Faces Canada to expand its product portfolio and market presence​.

Similarly, Mamaearth, another prominent player, raised 400 crores to fuel its growth and expand its range of natural and toxin-free products​​. Honasa , the parent company of Mama Earth had earlier acquired Mumbai-based BBlunt from Godrej Consumer Products Limited. Later that year, in May, it bought Dr Sheth’s, a dermatologist-formulated premium skincare brand, at a valuation of Rs 28 crore.

The Good Glamm Group, which owns MyGlamm, made headlines by acquiring The Moms Co. for Rs 500 crore, marking one of the largest transactions in the direct-to-consumer beauty segment.

These investments reflect a growing trend where established beauty companies are recognizing the potential of startups in driving innovation and meeting the demands of discerning consumers. By setting up dedicated funds and acquiring stakes in promising ventures, these companies are not only fostering innovation but also ensuring sustained growth in an increasingly competitive market.

With the launch of this $50 million fund, Lotus Herbals is well-positioned to play a pivotal role in shaping the future of the beauty and wellness industry, nurturing the next generation of beauty brands and bringing cutting-edge products to market.

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