The direct-to-consumer (D2C) personal care business 82°E, founded by Bollywood actress Deepika Padukone, is allegedly close to obtaining Rs 50 crore, or roughly $6 million, in an extended initial fundraising round. Both new and old investors are anticipated to contribute significantly, with Padukone and her family’s investment company, KA Enterprises LLP, making up a sizable portion of the total. This calculated financial move might have a big effect on the company’s growth trajectory and standing in the cutthroat personal care industry.
Credits: Insights Success
Key Investors and Stakeholders
Deepika Padukone and her family’s company, KA Enterprises LLP, is expected to be heavily involved in this fundraising round. Previously, in December 2022, DSG Partner and IDEO Ventures contributed $7.5 million to 82°E’s first seed round, which also included investment from the Padukone family office. The Padukone family currently owns 59.6% of the business, with noteworthy investors including actor Ranveer Singh (5.32%) and T-Series star Bhushan Kumar (6%). A special resolution to issue 50 lakh Series Seed 2 Compulsorily Convertible Preference Shares (CCPS) at an issue price of Rs 100 per share has been authorized by the 82°E board. This regulatory action makes it possible for the business to obtain the desired Rs 50 crore.
Expanding Market Reach and Product Lines
82°E would be able to broaden its product lines and increase the scope of its market reach with the infusion of Rs 50 crore. The brand has already demonstrated that it can be both creative and high-quality by providing a range of skin and body care products for men and women, including cleansers, toners, exfoliators, face masks, moisturizers, and sunscreens. Increased funding will allow 82°E to develop new product lines, enhance current formulae, and launch cutting-edge skincare products, growing its customer base and remaining ahead of industry trends.
Strengthening Brand Position
It is anticipated that 82°E’s brand positioning in the fiercely competitive personal care sector will be improved by the strategic financial boost. 82°E faces competition from well-known brands such as Plum, mCaffeine, Wow Skin Science, and the publicly traded Mamaearth. To draw in and keep customers, 82°E must consistently innovate and uphold high standards. With the money, the company will be able to fund effective marketing initiatives that will use Deepika Padukone’s celebrity power and active social media presence to develop a more engaging brand story.
Enhancing Customer Experience
One of the most important components of a successful direct-to-consumer (D2C) business plan is offering outstanding customer service. With the additional funds, 82°E will be able to invest in cutting-edge e-commerce innovations to offer its clients a smooth and customized purchasing experience. Some examples of developments include user-friendly interfaces, greater customer service, enhanced website functionality, and personalized recommendations. By prioritizing the demands of its clients, 82°E may create devoted clientele and promote repeat business.
Operational Expansion and Efficiency
The funds raised will also be crucial in scaling operational capabilities. This includes expanding production facilities, streamlining supply chain operations, and adopting more efficient logistics solutions. By increasing operational efficiency, 82°E can reduce costs, increase production capacity, and ensure timely delivery of products, which are critical factors in maintaining customer trust and satisfaction.
Financial Performance and Long-Term Sustainability
Despite a 25.1 crore EBITDA loss for the first nine months of FY24, according to 82°E, the company’s operating income increased significantly between March and December 2023, rising from Rs 11 crore in FY23 to Rs 22.82 crore. The extra cash can help close the gap between expansion and profitability by offering the means to guarantee long-term viability. By strategically concentrating on expense reduction and income growth, 82°E can work toward being a financially stable and prosperous firm.
Innovation and Research
Continuous innovation and research are essential to meeting changing consumer needs and remaining competitive. 82°E will have the funds necessary to invest in R&D thanks to the increased seed money. This could result in the development of innovative skincare products and eco-friendly goods, raising the bar for the personal care sector. 82°E can keep its competitive advantage and appeal to a more discriminating customer base by putting an emphasis on innovation.
Conclusion
An important step forward for 82°E is the planned Rs 50 crore investment round, which will give the company the financial leverage it needs to grow its operations, improve customer satisfaction, and solidify its place in the market. Deepika Padukone and her family’s significant involvement, along with the support of investors and stakeholders, position 82°E to take advantage of development prospects and establish long-term success in the competitive personal care industry. The brand is well-positioned to leave a lasting impression on the industry as long as it keeps innovating and growing.
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