RENÉE Cosmetics Secures Additional Funding in Extended Series B Round

RENÉE Cosmetics, a rapidly growing beauty brand, has announced the successful closing of an additional investment round within its ongoing Series B funding series. The investment, totaling INR 100 crore (approximately $12 million), was led by existing investors Evolvence India and Edelweiss Group. This latest infusion of capital brings RENÉE’s valuation to a range of Rs 1,200-1400 crore.

Earlier Investment Round and Continued Growth

Prior to this announcement, industry sources had indicated that RENÉE was poised to secure a new funding round with participation from its established investors. These sources revealed that Evolvence India and Edelweiss Group were nearing the final stages of a Rs 100 crore investment in the company.

In December 2022, RENÉE had secured $25 million in a Series B round spearheaded by Evolvence India, with additional participation from Edelweiss Group and existing investors Equanimity and 9Unicorns (now known as 100 Unicorns). This latest investment brings RENÉE’s total funding to $46 million across three funding rounds.

Valuation Soars with Continued Investor Confidence

Industry estimates suggest that RENÉE’s post-money valuation will reach approximately Rs 1,300-1,400 crore ($155-170 million) following the completion of this extended Series B round. This signifies a significant 60% increase compared to the company’s valuation during its previous Series B funding round in December 2022.

Brand Overview and Market Presence

Founded by Aashka Goradia Goble alongside Priyank Shah and Ashutosh Valani, the co-founders of Beardo, RENÉE offers a comprehensive selection of beauty products, including eye makeup, lip colors, skin serums, and highlighters. The company leverages a multi-channel distribution strategy, selling its products through third-party e-commerce and quick commerce platforms, while also maintaining a physical presence through over 650 shop-in-shop stores strategically located across India.

Financial Performance and Future Goals

Despite attempts to reach RENÉE, Evolvence, and Edelweiss Group for comment, no responses were received before publication.

Based on data compiled by startup data intelligence platform TheKredible, the ownership structure of RENÉE indicates that Valani and Shah each hold an 18.54% stake in the company, while Goble holds a 17.52% stake, all as of the company’s previous Series B round. Among external investors, Evolvence holds a significant stake exceeding 11%.

RENÉE experienced impressive revenue growth in FY23, with total revenue tripling to Rs 100.4 crore compared to Rs 32.4 crore in FY22. However, the company’s losses also grew during this period, increasing by a factor of 4.4 times to Rs 32.6 crore. RENÉE has set an ambitious target of reaching a revenue milestone of Rs 500 crore by the end of 2024. The company’s audited financial report for FY24 is yet to be filed.

Competitive Landscape

RENÉE operates in a competitive beauty market, facing established players like Lakme alongside other prominent startup brands such as Sugar Cosmetics and MyGlamm. The company’s ability to secure continued investor confidence and achieve its ambitious revenue goals will be key factors to watch in the coming months.