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May 16, 2022 The Business Line

Veda advises Earth Rhythm, a leading internet first, clinically effective and technology-driven personal care brand on $8 Mn fundraise

Homegrown skin and personal care brand Earth Rhythm has raised $8 million in a Series A round led by leading beauty retailer Nykaa. Existing investor Anicut Capital also participated in this round.

Earth Rhythm, which was formerly known as Soapworks India, was launched in 2015 by erstwhile banker and cosmetic chemist Harini Sivakumar. The clean beauty start-up, which had been a purely direct-to-consumer brand till March, has recently begun focusing on having an offline presence.

“Nykaa’s investment is a clear endorsement of our efforts to clinically effective and technology-driven skincare and haircare brands. This investment will enable us to further strengthen our position as a leader in the clean beauty segment. We are keen to leverage this capital for the rapid expansion of our thriving e-commerce platform and omni-channel distribution capabilities to reach new and existing geographies. We will also use the funds to hire senior talent, for brand building, and to cater to the increasing demand for products both domestically and in the international markets,” said Harini Sivakumar, Founder and CEO, Earth Rhythm.

The brand is distributed to markets such as US, Germany, Bhutan and Nepal.

Anchit Nayar, CEO, E-commerce Beauty, Nykaa said,“For Nykaa, brands that originate within the ethos of transparency and constant innovation towards efficacy and sustainability hold great value. We are proud to partner with a promising early-stage start-up and help them to achieve their potential by leveraging Nykaa’s expertise and ecosystem.”

In a BSE filing, FSN E-Commerce Ventures Ltd (Nykaa) said that it has entered into “Share Subscription Agreement, Share Purchase Agreement and Shareholders’ Agreement by the Company to acquire by way of subscription and/or purchase of Compulsory Convertible Cumulative Preference Shares and/or Equity shares, upto 18.51 per cent of the fully diluted share capital of Earth Rhythm Pvt Ltd,” at a consideration of Rs 41.65 crore.