Indian skincare brand Foxtale raises A$48.4m in a deal led by Kose Corporation
Foxtale, a DTC skincare brand founded in 2021 by Romita Mazumdar, has secured US$30m ($48.4m) in its latest funding round. The round was led by Kose Corporation, a Japanese beauty products giant, alongside existing investors Z47 (formerly Matrix Partners India), Kae Capital, and Panthera Growth Partners.
Transaction snapshot
Deal value: US$30m ($48.4m)
Deal multiples: N/A
Deal type: Equity investment
Investors: Kose Corporation, Z47, Kae Capital, Panthera Growth Partners
The funds will be used to expand Foxtale’s product range and strengthen its online presence. As part of the deal, Kose Corporation has acquired a 10% stake in Foxtale and entered into a strategic partnership aimed at deepening Kose’s presence in India. This marks Foxtale’s second funding round within a year, following a US$18m ($29m) raise in June 2024. The company has rapidly gained traction with its affordable skincare products tailored to skin concerns such as acne, aging, and hyperpigmentation. Foxtale’s products are available on its website and across leading Ecommerce platforms, including Nykaa, Amazon, Flipkart, and Myntra.
The partnership with Kose Corporation is a strategic move to enhance Kose’s footprint in the Global South, particularly in India, where Foxtale has established itself as a growing player. Kose’s President and CEO, Kobayashi Kazutoshi, highlighted the value of Foxtale’s data-driven marketing expertise in driving this alliance. The collaboration could include establishing a joint venture with Kose’s Indian subsidiary.
Foxtale reported strong performance in 2024, achieving 150% year-over-year revenue growth. With a catalog of 20 skincare products, the brand has recently ventured into body care, guided by insights from a consumer panel of 11,000 women. Foxtale generates 50% of its revenue from its website, 40% from online marketplaces, and 10% from offline retail.
Despite challenges in China, Kose is optimistic about its partnership with Foxtale as a means to reduce reliance on the Chinese market and boost its global presence. Weak consumption and rising local competition in China have impacted Kose’s overall performance, with net profit falling 28% in the first nine months of 2024.
Foxtale aims to achieve profitability by the end of the next financial year, positioning itself as a strong competitor in the DTC skincare market alongside brands like Sugar Cosmetics, WOW Skin Science, Plum, and MamaEarth. With its focused product strategy and continued growth, the brand is poised to reshape the skincare market while building a global presence.
