Lotus Herbals has lately announced the launch of a $50 million fund and it is basically aimed to support early-stage startups in the beauty sector. The initiative is named Lotus Innovation Fund. It will provide capital to patent-driven startups and help them scale in a market that is highly competitive.
The initiative will help Lotus Herbals to get a place alongside global beauty giants like L’Oreal and Unilever. L’Oreal runs Beauty Fund and Unilever supports beauty startups through Unilever Ventures. Lotus Herbals Managing Director Nitin Passi said that they will invest in patent-driven startups that require capital.
Lotus Herbals acquired a 20% stake in nutraceutical startup Yogic Secrets in 2022. It thereafter invested $220,000 in direct-to-consumer brand Better Beauty that was founded by TV actress Anita Hassanandani. Lately, it also backed the clean beauty marketplace Vanity Wagon and acquired 25% stake in the cosmetics brand Conscious Chemist.
Lotus Herbals was founded in 1993 and combines Ayurveda with modern technology. It offers a wide range of products across skincare, haircare, suncare and makeup.
The new announcement comes at such a time when India’s beauty and personal care market is booming. The market is growing at a compound annual growth rate (CAGR) of 12.5%. It is expected to reach $37.2 billion by 2025. Investors are taking note of the dynamic growth with some high-profile funding rounds such as RENEE Cosmetics’ $11.9 million Series B1 round and 82°E’s $6 million seed extension.
Its $50 million fund is a financial commitment and also a strategic one. It will help the company to position itself as a key player in the future of India’s beauty industry. It is believed to drive significant advancements in the sector and bring a new wave of innovative and competitive brands in the market.
