Deepika Padukone-founded D2C personal care start-up 82°E is looking to raise ₹50 crore ($6 million) in an extension of its seed round as its first investment round for the year, top executives of the company said. The capital infusion will be completed through the participation of former and new investors, including significant contributions from KA Enterprises LLP — the investment entity owned by Padukone and her family.
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When viewed, RoC reveals that 82°E has received board approval for a special resolution that would enable the issuance of 50 Lakhs Series Seed 2 Compulsorily Convertible Preference Shares (CCPS) at INR 100 each. The capital raise infusion is planned to be utilized for purposes of company expansion, growth and other corporate functions.
An earlier 82°E up to December 2022, has negotiated for $7. Three million dollars in its first seed funding round from DSG Partner and IDEO Ventures and another two million from the same. With this round, Padukone’s family office also invested in the fund as well. The Padukone family owning 59 percent of the company share and hence the name Modi Nadar Films as proposed by the Modi Nadar group. While Bhushan Kumar of T-Series owns 6% stake in the company, actor Ranveer Singh is the second largest with 5%. 32% in the company.
Established in 2022 by Deepika Padukone and Jigar Shah, 82°E is a skin and body care products manufacturing company that has production lines of skin treatment products for males and females across the nation. The range comprises washing, toning, and exfoliating products, masks, moisturisers, and protection products. The analysis revealed that there is good growth in this brand and the company has achieved Rs 22. Aimed at achieving operating income of Rs 82 Cr revenue from operations between March to December 2023, its operating income in the full FY 2023 was Rs 11 Cr only.
However, the company is in the red with a Rs 25.1 Cr loss at the EBITDA level from March to December 2023. Nevertheless, such a strong point of reference reaffirms the growth trajectory that the brand is now on and its potential to become profitable in the future.
82°E competes in a very cluttered space with companies like Plum, already a successfully running brand; mCaffeine, a buzz creator; Wow Skin Science; and publicly listed Mamaearth. A rising source of challenge to legacy personal care players, the D2C model of 82°E creates a direct connection with its consumers in a segment where rising consumer sophistication and demand for niche and premium products have been on the increase.
Freshly raised capital will potentially be used in increasing operations, developing the product line, and expanding the distribution of 82°E. Celebrity co-investors like this will not only boost the brand but also enhance credibility before the consumers. With this significant capital, this involvement and large minority stake in the company are all indications of strong commitment to the success of the brand.
Strategic investments by renowned venture firms DSG Partner and IDEO Ventures bring invaluable industry insight and financial support to help 82°E navigate competitors and seize growth opportunities. The latest round of finance thus mirrors that the brand is ambitious and has a strategic intent to capture a considerable market share by increasing its product line.
With influential investors and a clear vision of its growth, 82°E is well-poised to take advantage of strong D2C personal care market growth potential, buttressed by its strong brand equity and innovative product offerings. Success in current financing would be the most important phase in 82°E’s journey to become one of the leading names in personal care.
