With additional participation from current investors Kalaari Capital and Beenext, L'Oréal's VC fund BOLD, V3 Ventures, and DSG Consumer Partners, the direct-to-consumer skincare business Deconstruct has raised Rs 65 crore, which stands at USD 7.7 million. In August 2022, Kalaari Capital's flagship programs CXXO and Beenext contributed USD 2 million to Deconstruct's seed round.
The new funding will be utilized to develop new products and strengthen market leadership in already-existing markets including sunscreen and serums. In order to improve accessibility, the money will also be utilized to build the brand's dominance in the mild active market and to grow into retail and quick commerce.
Deconstruct, which was founded by Malini Adapureddy, offers skincare products for all skin types, especially those with sensitive skin. Beginner-friendly items like mattifying, gel-based sunscreens designed for India's hot, muggy atmosphere are the brand's main focus. In a market that is frequently influenced by global trends, the company claims that this strategy distinguishes it by catering to the unique demands of Indian consumers.
In the most isolated pincodes, we have assisted 2Cr+ novices inbeginning their skincare journeys over the previous 12 months. We are able to concentrate exclusively on creating medicines that are both mild and highly effective thanks to this support," Adapureddy said.
According to Deconstruct, it increased by 1,000% in FY25 and generated Rs 200 crore in net revenue annually. The company's operating revenue increased by 2.3 times to Rs 15.46 crore during the fiscal year that ended in March 2024 from Rs 6.67 crore for FY23. The company was able to cut its losses by 33% to Rs 4.9 crore during that time.
Furthermoore, as per a startup data analytics platform, Kalaari Capital controlled 20.32% of the business at the Seed fundraising round, while founder and CEO Malini Adapureddy owned close to 60%.
