Cosmetics giant L’Oreal’s venture capital fund BOLD, Belgian investment firm Verlinvest's VC arm V3 Ventures, and Indian early-stage investor DSG Consumer Partners have joined the cap table of Deconstruct Skincare.
The four-year-old skincare brand, which is owned by Baypure Lifestyle Pvt Ltd, said Wednesday it has raised Rs 65 crore ($7.5 million) in a new funding round. Existing investors Kalaari Capital and Beenext also joined in the round.
Deconstruct, which offers beginner-friendly formulations specific to the Indian consumer, will use the funds for product development and enhance its distribution network on quick commerce platforms, the company said in a statement.
In 2022, Kalaari Capital, Beenext Capital, and angel investor and Flipkart co-founder Binny Bansal had invested $2 million (about Rs 16 crore) in the company.
The company used a chunk of the first round of investments for product innovation and for expanding its team, founder and chief executive officer Malini Adapureddy told VCCircle.
The skincare brand primarily sells its products on online marketplaces and quick commerce platforms, apart from its own website.
The brand will look to diversify its product portfolio by venturing into new categories and deepening its existing segments like sunscreens and serums, Deconstruct said.
Deconstruct, founded by IIT alumna Malini Adapureddy in 2021, offers skincare products like face serums, facewash, face moisturizers, sunscreens, body serums, body cream, and body wash.
In 2024-25, the brand is set to record an over 11-fold jump in revenue, with net sales likely to touch Rs 170-175 crore, said Adapureddy.
The jump in revenue is likely to have a positive impact on the company's bottomline this year. Deconstruct posted a net loss of Rs 4.9 crore in 2023-24.
“We attribute this (sharp growth in revenue) to product focus. Customers... are a little concerned about side effects. That is where our uniqueness comes in. We are not only effective but also gentle [on the skin],” said Adapureddy.
This is BOLD’s second investment in an Indian firm. In December, BOLD along with Unilever Ventures and Skywalker Family Office had invested $4 million in hair care brand Arata.
BOLD, the corporate venture capital fund of L’Oréal, makes minority investments from seed to Series C across beauty brands and beauty platforms.
As for DSG Consumer, its other investments in Indian companies include Oyo, Veeba, Epigamia, Sula, Arata, Sleepy Owl, Anveshan, XYXX, StayVista, Indus Valley, Farmley, and GoZero.
