Beauty and personal care business Lotus Herbals has established a $50 million startup investment fund. Designed to support innovative businesses in the cosmetics space, the fund will back between two to three startups each year.
“We will invest in patent-driven startups that require capital; that’s a white and scaleable space, amid a very cluttered market with limited differentiation and a lot of brands being deeply discounted,” said Lotus Herbals’ managing director Nitin Passi, ET Bureau.
Each year, Lotus Herbals’ fund will choose between two and three startups and invest in them. The fund will work together with these companies for a period of five to seven years to guide them through growth. The fund will specifically focus on Indian businesses and aims to tap into the fast growing beauty market in the country.
India is emerging as one of the world’s swiftest growing beauty markets, the Economic Times reported. With a young population, growing middle class, and increasing rural consumption, the country is witnessing a host of new brands emerge in the industry. Lotus Herbals aims to simultaneously support innovation and growth with its new fund.
Lotus Herbals was founded by Kamal Passi in 1993 and aims to mix natural and Ayurvedic ingredients with modern beauty trends, according to its website.
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