Naturis Cosmetics, a contract manufacturer for beauty brands, has secured a significant investment from Sharrp Ventures and Mirabilis Investment Trust, signaling a promising future for the company. This funding round, led by Sharrp Ventures, has raised Rs 33.74 crore ($3.5 million), with Mirabilis Investment Trust contributing Rs 11.25 crore. The investment is a testament to Naturis Cosmetics' growing reputation and its ability to cater to a diverse range of beauty brands, including Nykaa, Plum, Pilgrim, and Bare Anatomy.
What makes this deal particularly interesting is the company's strategic approach to funding. Naturis Cosmetics has not only raised a substantial amount but has also taken a calculated risk by issuing preference shares. This move allows the company to maintain control while attracting investors. The issue of 12,784 preference shares at an issue price of Rs 26,400 is a strategic decision that showcases the company's commitment to its vision and long-term goals.
The valuation of Naturis Cosmetics post-money is estimated to be around Rs 364 crore or approximately $38 million, according to Entrackr's estimates. This valuation highlights the company's potential for growth and its ability to scale its operations. The B2B contract manufacturing model, which Naturis Cosmetics operates, is a lucrative business, and the company's diverse client base further strengthens its position in the market.
Founded in 2011 by Rahul Tandon, Naturis Cosmetics has already demonstrated its growth potential. The company reported a 40% year-on-year growth in operating revenue to Rs 154 crore in FY25, up from Rs 110 crore in FY24. This growth, coupled with a net profit of Rs 12 crore, showcases Naturis Cosmetics' financial stability and its ability to generate consistent returns. The company's focus on end-to-end OEM/ODM, private label, product formulation, R&D, packaging, manufacturing, and regulatory support services is a key differentiator in the market.
The investment from Sharrp Ventures and Mirabilis Investment Trust will enable Naturis Cosmetics to expand its operations, enhance its product offerings, and further solidify its position as a leading contract manufacturer in the beauty industry. The company's strategic funding approach and its commitment to maintaining control while attracting investors are commendable. As Naturis Cosmetics continues to grow, it will be fascinating to see how it leverages this investment to expand its reach and impact in the beauty industry.
In my opinion, Naturis Cosmetics' funding round is a significant milestone for the company and the beauty industry as a whole. It demonstrates the potential for growth and innovation in the B2B contract manufacturing sector. As the company continues to thrive, it will be interesting to see how it leverages its new funding to drive further success and create a lasting impact in the beauty industry.
