Lotus Herbals, a prominent personal care company, has launched a $50 million fund to invest in early-stage beauty startups. The Lotus Innovation Fund is the second such initiative in India, following a similar fund by New Incubation Ventures and Nykaa in 2022. Globally, L’Oreal and Unilever have also established funds to support beauty startups.
Nitin Passi, managing director of Lotus Herbals, stated that the fund will focus on patent-driven startups that need capital, aiming to stand out in a saturated market with many heavily discounted brands. Lotus Herbals has previously invested in several startups, including a 20% stake in Yogic Secrets and $220,000 in Anita Hassanandani’s D2C startup, Better Beauty.
Additionally, Lotus Herbals backed the clean beauty marketplace Vanity Wagon in October and acquired a 25% stake in Conscious Chemist in January. The company’s portfolio also includes Fixderma India and SoulTree.
Founded in 1993, Lotus Herbals blends the ancient science of Ayurveda with modern technology, offering over 500 products in skincare, haircare, suncare, and makeup. The company plans to invest in two to three innovative startups each year, guiding them for five to seven years with a focus on the Indian market.
This initiative comes at a time when the beauty and personal care sector is attracting significant investor interest. Recent investments in the industry include RENEE Cosmetics’ $11.9 million Series B1 funding round, 82°E’s $6 million extended seed round, and CHOSEN by Dermatology’s $1.2 million seed funding.