Lotus Herbals, a prominent player in premium cosmetics, has unveiled a USD 50 million innovation fund aimed at nurturing beauty startups amidst India’s burgeoning market. The initiative responds to the country’s dynamic beauty and cosmetics sector, driven by its youthful demographic.
Nitin Passi, Managing Director of Lotus Herbals, emphasized the fund’s focus on patent-driven startups seeking capital. “We will invest in startups with an innovation plus growth mindset,” Passi stated, outlining plans to support two to three companies annually for five to seven years, with a strategic emphasis on the Indian market.
This fund marks the second of its kind in India, following the 2022 launch of a strategic early-stage investment fund by New Incubation Ventures, backed by Estee Lauder, and beauty retailer Nykaa.
India’s beauty industry is poised for substantial growth, with projections suggesting a potential fivefold expansion in the beauty and personal care sector over the next 15 years, and significant increases in specific categories.
Lotus Herbals has already made investments in several beauty and wellness brands, including Fixderma India, Conscious Chemist, Vanity Wagon, and Better Beauty. This initiative underscores a growing trend among established beauty firms to foster innovation and capitalize on emerging market opportunities through strategic investments in startups.