Deconstruct Skincare raises USD 2 million in seed fund led by Kalaari Capital
New Delhi: Deconstruct, a Bengaluru based start-up skincare brand, backed by science and unique formulations for result-oriented application, has secured USD 2 million in seed fund from Kalaari Capital’s flagship program CXXO and Beenext. Established with the objective of introducing transparent, solution-oriented and evidence-based skincare products, Deconstruct, also aims to increase awareness about the right formulations needed to address specific skincare concerns among women in India.
Founded in early 2021 by Malini Adapureddy, an alumnus of IIT Kharagpur and INSEAD, Deconstruct, has already achieved strong customer love for its products online by virtue of building a personal care brand for the knowledge economy. The brand’s philosophy and motto of ‘information over impulse’, is helping consumers understand product formulations and its impact on their skin, with a focused content strategy on social media to drive consumer education. The brand currently has 20 SKUs across face washes, moisturizers and serums.
Deconstruct aims to utilize the funding from Kalaari Capital for research and product development, innovation and expansion, hiring and marketing initiatives. In the next 12-18 months, the enterprise intends to increase its product range from 15 to 50 products, within skincare and adjacent categories, giving consumers greater choice, while also exploring presence in a few international markets such as UAE and some South East Asian markets. There are also plans to retail products on ‘quick commerce’ platforms such as Dunzo, Swiggy and Big Basket among others, expanding from existing distribution channels, which include all major e-commerce platforms as wells as Deconstruct’s own online platform. Deconstruct recently announced its foray into the Body Care segment with a range of gender-neutral body care products.
With 50% repeat rates, Deconstruct, within 16 months of inception, is growing at 25% -30% month-on-month and aims to become a 100-crore brand in the next 2 years. About 30% of the orders come in from the top 8 metros and 70% from the rest of India on its platform.
Deconstruct is the fifth portfolio company for Kalaari’s flagship program that seeks to level the playing field for women founders in India’s start-up ecosystem. Developed on the three primary pillars of Capital, Community and Coaching, it helps female founder-CEOs take India’s startup ecosystem to the next level, as they shape India’s digital charter, creating exponential value in the economy. Kalaari Capital has allocated US $10 million annually to fund 8-10 women entrepreneurs in the first cohort of CXXO.
Speaking on the funding from Kalaari Capital’s CXXO, Malini Adapureddy, Founder and CEO of Deconstruct Skincare, said, “Kalaari came in from a very first principle thought process and undertook a detailed understanding of the business. This provided me immense confidence that they can be extremely valuable as partners who can go beyond capital. Kalaari has invested in multiple consumer businesses and has seen them scale and this will be of help as we go forward. Another impressive initiative that attracted me as a woman entrepreneur is the CXXO – for the inspirational and like-minded women that are a part and for the vision to help create a level playing field.”
Vamshi Reddy, Partner at Kalaari Capital, stated, “There is a paradigm shift in terms of consumer preferences with respect to beauty and personal care in the past few years. Annual per capita consumption of BPC products in India today is at $15 – we are only scratching the surface in terms of penetration. As consumers and their purchase behavior evolves, we believe there will be an opportunity for new age brands to capitalize on unique value propositions to build strong recall from consumers.
Deconstruct has a proven product market fit with evidence based skin care to educate customers around formulations and their impact. Strong customer love for the products, as well as capital-efficient growth makes us believe that the brand is poised to scale rapidly over the next few years.”
According to reports, BPC is a 20-billion-dollar market in India today with a 10% penetration online and the same is expected to exhibit a CAGR of 6.5% during the period, 2022-27, according to IMARC group.