- Founder: Krishma Kewalramani
- Business: Skin & Body Care
- Ask: ₹1 Crore for 1% Equity
- Valuation/ Networth: ₹100 Crores
- Funding: ₹1 Crore for 1.5% Equity
- Sharks: Namita Thapar & Aman Gupta
- Pitch: Youtube
- Episode: Season 4 Episode 1
FAE Beauty Shark Tank India Pitch:
FAE Beauty is an Indian startup which appeared on Shark Tank India Season 4. They were the first telecasted pitch of Season 4. The founder shared that 74% of women in India fall under brown, dark brown or intense brown skin category. However, most of the beauty industry is focusing on the fair skin category. FAE Beauty was born as an inclusive beauty brand which make products from all skin tones, undertones and textures.
FAE Beauty has over 50 products, which are available through their own website, marketplace, & Quick commerce platforms. The company has served over 3 lakh customers in their lifetime so far. The founder shared that the market they are targeting is worth over 50 thousand crores rupees. The founder sought an investment of ₹1 Crore in exchange for 1% equity in her company.
FAE Beauty is inclusive in terms of gender, skin tone, skin texture, skin type and body type. The company operates on a no Photoshop policy for their socials to promote this. The founder shared that all their products are developed in-house. she also added that they are the first brand in India to use TPA in their products which is type of plastic which is soothing and easy to apply on the lips.
FAE Beauty’s Financials during Shark Tank India?
FAE Beauty spends less than 5% on research and development of their products. They sell their liquid lipsticks for around ₹550 which is competitive in the Indian market. Lip Whip is the company’s hero product.
For their revenue FAE Beauty made a revenue of ₹30 Lakhs in their first financial year but they burned about ₹80 Lakhs as well. This was followed by ₹70 lakhs at a loss of ₹1.5 Crores in FY21-22. The company made revenue of ₹3.3 Crores in FY22-23 with a loss of ₹2.5 Crores. In the last financial year, FAE Beauty made a revenue of ₹7 Crores with loss of ₹80 Lakhs.
FY24-25 is the first financial year where the company is expecting to make a profit. The founder shared that by October 2024, They have done revenue of ₹10 Crores with a profit of ₹1.25 Crores. She felt they changed the strategy that she would not burn more money and would focus on their hero product going forward. The company is expecting to close the year with net revenue of ₹22 Crores.
The company have raised several rounds of funding as well. They raised ₹1.5 Crores at a valuation of ₹6 Crores in FY20-21. They raised ₹2.4 crores in the following year with a valuation of ₹26 Crores and they did their round in FY23-24 at a valuation of ₹32 Crores. Their final round was at a valuation of ₹22 Crores in FY23-24 where they raised ₹3 Crores. Their last round was funded by Titan Capital which is venture capital fund with over 280+ portfolio companies.
FAE Beauty had ₹2 Crores worth of runway while they were on Shark Tank but the founder added that they also have a debt of ₹1.4 Crores. Krishma still owns 38% of the company, Her brother has 4.8% and her father owns 1% of the corporation. They also have a ESOP pool of 10.3% and rest is with the investors. 26% of the equity is with Arihant Patni who was investor in first 3 rounds. 13.5% is with Titan Capital & rest is with other angel investors.
For Unit economics, 25% of net revenue goes to COGS, 10% goes to logistics and gateway commissions, 35% goes to marketing, overheads are at 18% leaving the company with 12% EBITDA. The founder needs help with Brand building & operations. She added that they only started doing quick commerce 3 months ago but now it makes 25% of their total revenue.
FAE Beauty Shark Tank India Negotiations & Funding:
Aman gave the first offer of ₹1 Crore for 3%, and Namita asked if she could join Aman. Vineeta felt like she wasn’t the right investor in the venture so she decided to go out of the deal. Anupam offered ₹1 Crore for 3.33% valuing the company at ₹30 Crores. Peyush offered ₹1 Crore for 3% valuing the company at ₹33.3 Crores.
Anupam changed his offer to ₹1.25 Crores for 3% of the company valuing the business at ₹41.66 Crores. Aman changed his offer to ₹1 Crore for 2% with Namita coming along on the deal as well. Anupam again reversed his offer to ₹1.5 Crores for 3%. The founder countered all the sharks at ₹1 Crore for 1.3%. To which Aman countered at ₹1 Crore for 1.5% which Krishma accepted and they closed the deal at ₹66.67 Crore valuation.
Who is the founder of FAE Beauty?
Krishma Kewalramani founded FAE Beauty. She is from Mumbai India. She shared on the tank that she is her favourite person but that wasn’t always the case. Krishma shared that makeup changed the way she perceived herself.
Krishma studied business administration from University of California in Berkeley, USA. She has also worked as a management consultant. She went to a makeup store after and worked as a makeup artist at different studios.
How is FAE Beauty doing after Shark Tank India?
Our research in the FAE Beauty revealed that while the company did get a deal on the shark tank, early signs suggest that their deal is not yet finalized. As their episode just aired on January 6th, the company is currently running a promo on their website to gain traction. we will keep you updated on how the company is doing but in the meantime, you can check out their products on Amazon by clicking the button below!
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