Skincare startup ClayCo Cosmetics has raised $2 million (around Rs 16 crore) in its Series A funding round from Unilever Ventures, the company said on Tuesday. The first external investment in the company will be deployed to fuel its product portfolio’s expansion, strengthen its branding and promotion efforts, recruitment, and working capital requirements.
Speaking on the investment, Niharika Jhunjhunwala, Founder of ClayCo Cosmetics said, “This funding will enable us to enhance brand awareness, introduce new products, invest in R&D, and fuel our growth. As consumers become more aware of global ingredients like fermented rice, ginseng, and CICA, they are willing to invest in high-quality, efficacious skincare.”
Founded in March 2024, ClayCo Cosmetics works on a direct-to-consumer (D2C) model selling products on its own website and online e-commerce marketplaces.
“Unilever Ventures is pleased to support Clayco in their mission to elevate India’s beauty landscape by introducing global beauty rituals that celebrate individuality and innovation,” said Pawan Chaturvedi, Partner-Asia, Unilever Ventures.
The Indian skincare market is expected to generate a revenue of $9.93 billion in 2024. It is expected to grow at a CAGR of 2.40 per cent during 2024-29 with a surge in demand for natural and Ayurvedic products, reflecting a growing preference for traditional remedies and organic ingredients, according to the data portal Statista.
The Indian skincare market has seen a number of startups coming up in the past few years tapping into the demand for organic and natural products such as The Derma Co., Minimalist, Pilgrim, Nat Habit, Foxtale, Conscious Chemist, and more.