The company will use the proceeds from the equity financing round to product research and development and inventory buildup.
Personal care startup MCaffeine has secured $500,000 (about Rs.3.3 crore) in a pre-Series A round led by a clutch of high net-worth individuals and angel investment platforms.
The company in a statement said the latest round of funding was led by the startup’s existing backer Harminder Sahni, founder of consultancy firm Wazir Advisors, Lets Ventures’ Mohit Bajaj and Calcutta Angels. This comes about 15 months after the Mumbai-based company had raised $300,000 from Sahni, Kaushal Aggarwal of Avendus Capital, Pranay Jivrajka, chief executive of FoodPanda India and others.
Sahni in a company press release said, “MCaffeine as a brand has the pulse of the new generation. They understand the physical and emotional needs of their market. Moreover, their execution so far has been par excellence. What they have been able to achieve in such a limited time is really commendable. MCaffeine, with a team of passionate entrepreneurs, is sure to succeed in this space and emerge as the favorite personal care brand amongst millennials.”
The company, which was launched in 2015 by Vikas Lachhwani and Tarun Sharma, will use the proceeds from the equity financing round to product research and development and inventory buildup. It will also allocate some portion of the capital raised to expand its product portfolio and go omni-channel, it said in a statement.
Lachhwani said, “We are aware that we are contending in a space where is there is stiff competition... we are looking to build a brand which reflects the millennial lifestyle and aspirations... Our aim is to make a compelling proposition in the consumer products market in order to drive our product and brand philosophy."
The company sells its products across the country’s top ecommerce platforms, including Amazon and Nyka. Its personal care product portfolio includes shampoos, face washes, shower gels, body lotions and face masks, which use caffeine as a major ingredient.
Sharma said, “In just about one year, we have expanded our portfolio from 6 products to 16 products. Keeping operational profitability from day 1, we have served more than 1 lakh customers till date...We plan to touch 1 million customers this year.” MCaffeine claims to do annual revenue run-rate of Rs.5 crore.