Vanity Wagon raises $2 million in funding led by Agility Ventures Partners, Lotus Herbals

• ByStartupStory     |    October 7, 2022

According to a press statement from the clean beauty marketplace Vanity Wagon, Agility Ventures Partners and Lotus Herbals Pvt Ltd led a $2 million pre-Series A financing on Friday.

Additionally, the Delhi-based beauty business raised money from Venture Catalysts, Inflection Point Ventures, and a few high-net-worth individuals (HNIs), raising its valuation to $8 million. Along with investing in its technology, marketing, and sales-driven tactics, Vanity Wagon intends to use these funds to expand its private label portfolio, offline retail operations, and brand-building efforts.

“Our vision is to build a sustainable brand in the beauty segment which will be strengthened by this investment. Furthermore, our strategy to go omnichannel, co-own more clean beauty brands, and expand internationally is what a part of this investment will be deployed in. The beauty and e-retail markets are going through an interesting time, where every enterprise is trying to establish a market presence. We are going to continue reinforcing our hold on the clean beauty Market,” said Naina Ruhail, director and chief executive officer at Vanity Wagon.

Inflection Point Ventures, the pre-Series A round leader, raised Rs 5.5 crore for the beauty portal in October of last year. Agility Ventures, Lotus Herbals, and Venture Catalysts all took part in the funding round.

Over 350 brands, including Dot & Key, Plush, Ikkai, Bubblefarm, and Carbon Bae, have joined the startup’s platform. Following its collaboration with five new global businesses, the company has added around 15% foreign brands, according to a press statement.

Vanity Wagon, a platform that sells wellness and beauty items, was established in 2018 and claims to provide genuine brand-sourced products. The startup, which was co-founded by Naina Ruhail, Prateek Ruhail, and Sahil Shrestha, hopes to reach a revenue of Rs 500 crore over the next two years.

According to a survey by researchandmarkets.com, the online market for personal care and cosmetic products in India is predicted to increase at an annualised rate of 6.32% from 2022 to 2027. According to research by Motilal Oswal Financial Services Ltd., the online beauty and personal care business, on the other hand, is anticipated to develop at an even quicker rate with a 60% CAGR between 2016 and 2025.

Nykaa’s deal with Dubai-based Apparel Group to market its products in the Gulf Cooperation Council was the most significant recent development in the industry’s expansion. By working together, the multi-brand store Nykaa hopes to capitalise on the offline retailer’s market dominance in the UAE and develop a distinctive GCC-focused beauty offering.

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