Mumbai-based PEP Technologies Pvt. Ltd., which operates mCaffeine, India’s first caffeine infused personal care brand, has raised US$2 million from a consortium of investors and RPSG Ventures, a fund backed by RP-Sanjiv Goenka Group, reported ET Retail.
The startup will use the funds raised in in Research & Development, expand distribution across digital channels and grow its operations. mCaffeine also plans to expand its product portfolio to include 30 more products in the next one year.
Founded in 2016, by Tarun Sharma and Vikas Lachhwani, mCaffeine brand has nearly ten products with caffeine as one the key ingredient, which is said to have anti-oxidant and anti-inflammatory properties. It is sold online through its own portal as well as marketplaces such as Amazon, Nykaa and Flipkart.
Tarun Sharma, co-founder of mCaffeine, said in a media statement, “With a surge in disposable income, millennials are becoming more discerning and indulgent. In an evolving trend in India, youth are beginning to look at innovative personal care products created specifically for them.”
In March last year, mCaffeine had raised Rs. 3.5 crore from Harminder Sahni, Founder & MD of Wazir Advisors, and Mohit Bajaj, Managing Partner at LetsVenture. Prior to that, the startup had raised angel funding from Sahni and three other investors, in December 2016.
According to Assocham, Personal care market in India is set to touch $20 Billion by 2025 from the current $6.5 billion on the back of rise in disposable income of middle class and growing aspirations of people. Within personal care segment, natural and organic personal care is amongst the faster growing category.
“However, it is increasingly getting cluttered with little or no realdifferentiation. We believe the “caffeine” based sharp positioning of mCaffeine sets them apart, which is also reflected in their growth profile,” said Abhishek Goenka, head of RPSG Ventures.