mCaffeine, a D2C personal care startup, raises $31 million to fund international expansion
- ByStartupStory | March 29, 2022
Paragon Partners led a $31.5 million Series C investment deal for personal care business mCaffeine. Existing investors Amicus Capital Partners and RPSG Capital Ventures joined the round, as did Singularity Growth Opportunities Fund, Sharrp Ventures, and Singularity Growth Opportunities Fund.
The latest round was picked up by the direct-to-consumer company at a valuation of Rs 1,000 crore, or more than $130 million, according to the company. The Mumbai-based business earlier raised $6 million in a Series B investment in September 2020 and has now raised $40 million in three stages.
According to a statement from mCaffeine, which has operations in India, the United Arab Emirates, Nepal, and the Maldives, the firm expects to introduce its products in 12 countries by 2022. Before extending to Europe and the United States, the brand will first debut its items throughout the Middle East and North Africa.
As per mCaffeine, it does around 90% of its business online through its own portal and marketplaces such as Amazon, Nykaa, and Flipkart, with the remainder coming from offline locations. The cash will also be used to expand the company’s offline presence from 5,000 to 25,000 locations.
Plum, Juicy Chemistry, Wow Skin, MamaEarth, Sugar Cosmetics, and MyGlamm are among the D2C beauty brands mCaffeine competes with. According to regulatory filings, mCaffeine’s revenue from operations for the fiscal year ending in March 2021 increased by 65 percent to Rs 66.51 crore from Rs 40.30 crore in FY20. Its expenses climbed by 63 percent to Rs 74.88 crore during the period, resulting in a loss of Rs 8.29 crore in FY21, compared to Rs 5.51 crore the previous fiscal year.
Over the next five years, the company intends to generate roughly Rs 100 crore in sales from international markets.
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