FAE Beauty, which stands for Free and Equal, isn’t just another cosmetics brand—they want to be seen as a movement. Founded in 2018 by Karishma Kevalramani, this brand champions inclusivity, focusing on gender-neutral beauty products that cater to a diverse range of Indian skin tones. FAE Beauty made waves on the first episode of Shark Tank India – Season 4, where its founder went head-to-head with the sharks for an investment deal.
Karishma’s pitch was as bold as her brand’s mission. When she entered the Shark Tank arena, she was looking for a Rs 1 crore investment in exchange for just 1% equity, valuing FAE Beauty at a cool Rs 100 crore. This came despite having already diluted 38% of her equity in earlier funding rounds—a testament to her belief in the company’s future.
“We see ourselves having an omnichannel distribution strategy, with offline being a big piece of the pie 5 years down the line. We would expect to at least 30x revenue in 5 years’ time through regional language content and marketing, and building products with a pricing strategy that makes more sense for tier 2 and 3 cities. Going offline will also be a part of the penetration strategy a couple of years down the line. Product differentiation is key – we cannot compete with anyone if our products are simply the same ‘me-too’ formulas packaged in a new avatar,” Karishma Kewalramani, founder, FAE Beauty, told BrandWagon Online, when talking about the company’s further plans for expansion.
Not everyone was convinced, though. Vineeta Singh, co-founder and CEO of SUGAR Cosmetics, passed on the opportunity, citing concerns over the low equity on offer. But the other sharks? Well, they smelled potential. Aman Gupta (boAt Lifestyle), Namita Thapar (Emcure Pharmaceuticals), Peyush Bansal (Lenskart), and Anupam Mittal (People Group) weren’t ready to let this one slip away. They quickly jumped into a bidding war, with Aman and Namita initially offering Rs 1 crore for 3% equity, matched by Peyush. Anupam Mittal raised the stakes with an offer of 3.3%.
But Karishma wasn’t backing down. With a sharp business sense and a dash of negotiation finesse, she countered with a bold offer: Rs 1 crore for just 1.3% equity. After a bit more back-and-forth, a deal was struck. Karishma walked away with Rs 1 crore for 1.5% equity, thanks to the combined power of Aman Gupta and Namita Thapar.
Here’s the lowdown: FAE Beauty has been experiencing some serious growth. In FY24, the brand’s revenue skyrocketed by 128.43%, hitting Rs 7.18 crore, up from Rs 3.14 crore in FY23. Meanwhile, its net loss narrowed by an impressive 65.95%, from Rs 2.65 crore in FY23 to Rs 90.28 lakh in FY24—solid proof that this beauty brand is on the rise.
When asked about the foundation to a brand’s ensured long term success, “Staying connected with our customers and really listening to their feedback helps us ensure we’re on the right track. And, by focusing on inclusivity in an industry that often misses out on certain groups, we’ve built a loyal community. That’s really at the heart of our long-term success,” Kewalramani commented.
With that deal in place, FAE Beauty is poised to continue its upward trajectory. The brand’s flagship product, the Buildable Matte Lipstick, is already a favourite, and the entire line of vegan, cruelty-free cosmetics has become a big sell point amongst a wider range of consumers.