Luxury skincare brand RAS Luxury Skincare has successfully raised $5 million in its Series A funding round led by Unilever Ventures. This funding marks a significant milestone for the Raipur-based startup founded in 2017 by Shubhika Jain, Suramya Jain, and Sangeeta Jain. The brand follows a unique “Farm-to-Face” philosophy, ensuring sustainability and quality. The round also saw participation from Amazon Smbhav Venture Fund, existing investors like Sixth Sense Ventures, and prominent angel investors. The funds will drive retail expansion, talent acquisition, R&D, branding, marketing, and technology. The brand plans to expand its Exclusive Brand Outlets (EBOs) from two to fifty within three years and enhance its presence across online and offline channels.
Inside RAS Luxury Skincare: A Look at the Startup’s Model and Growth
The Working Model
RAS Luxury Skincare operates on a vertically integrated Farm-to-Face model. The company manages the entire process—from farming 100% organic ingredients to conducting in-house R&D and manufacturing. This approach ensures premium quality and sustainable production practices. Their luxurious skincare products combine natural ingredients with scientific formulations, offering consumers high-performance solutions that are ethical and safe.
Revenue Model
The brand generates revenue through multiple channels:
- Direct-to-Consumer (D2C): Over 50% of its revenue comes from its D2C channel, driven by its website and digital marketing efforts.
- E-commerce Platforms: Products are available on platforms like Nykaa, Amazon, Flipkart, and Myntra.
- Quick Commerce: Collaborations with Blinkit and Zepto provide quick delivery options.
- Offline Retail: RAS currently operates two Exclusive Brand Outlets (EBOs) and plans to expand to 50 within three years.
- HORECA Segment: Partnerships with the hospitality industry are expected to contribute significantly in the future.
Funding Background
In April 2023, RAS secured $1.5 million in a pre-Series A round led by Green Frontier Capital, focusing on sustainability investments. The recent $5 million Series A round led by Unilever Ventures includes contributions from the Amazon Smbhav Venture Fund, Sixth Sense Ventures, and prominent angel investors like Keki Mistry’s Family. This funding highlights investor confidence in RAS’s unique value proposition and growth potential.
Founders and Their Vision
Founded by the mother-daughter trio Sangeeta Jain, Shubhika Jain, and Suramya Jain, RAS Luxury Skincare blends innovation with Indian heritage. Shubhika Jain, the CEO, emphasizes the growing demand for natural, authentic, and high-performance luxury skincare products in India. With their Farm-to-Face philosophy, the founders aim to make RAS India’s leading luxury skincare brand while expanding globally by Unilever.
Products and Services
RAS offers a wide range of skincare products enriched with active botanicals, including:
- Facial oils
- Serums
- Moisturizers
- Cleansers
- Essential oils
These products cater to consumers seeking high-quality, effective, and sustainable skincare solutions.
Recent Funding and Future Plans
The $5 Million Milestone
The $5 million Series A funding round marks a turning point for RAS Luxury Skincare by Unilever Ventures, the round also brought in two new institutional investors:
- Amazon Smbhav Venture Fund
- Sixth Sense Ventures
Prominent angel investors like Keki Mistry’s Family also participated, showcasing widespread investor interest.
Expansion Plans
The fresh capital will be strategically utilized for:
- Retail Growth: Expanding from 2 to 50 Exclusive Brand Outlets (EBOs) across India within three years.
- Talent Acquisition: Building a robust team to support growth.
- R&D: Innovating new product lines with advanced formulations.
- Branding and Marketing: Strengthening the brand’s presence through campaigns and partnerships.
- Technology: Enhancing customer experience through technological advancements.
Market Performance
- Revenue Growth: RAS has reported a 140% Compound Annual Growth Rate (CAGR) over the past year.
- Channel Contributions: D2C sales account for over 50% of revenue. Offline sales are projected to contribute 25% within four years.
- Platform Presence: The brand is available on major e-commerce and quick commerce platforms, ensuring widespread accessibility.
Learning for Startups and Entrepreneurs
- Vertical Integration for Quality Control: RAS’s Farm-to-Face model ensures premium quality and sustainability, setting it apart from competitors.
- Diverse Revenue Channels: A mix of online, offline, and quick-commerce channels boosts scalability and resilience.
- Strategic Partnerships: Collaborations with investors like Unilever Ventures and Amazon Smbhav Venture Fund open doors to new markets and expertise.
- Sustainability as a USP: Emphasizing eco-friendly practices resonates with modern consumers, creating a strong brand identity.
- Retail Expansion Strategy: Focusing on both EBOs and shop-in-shop formats ensures deeper market penetration.
- Leveraging Funding: Utilizing funds for R&D, marketing, and technology ensures long-term growth and innovation.
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