RENÉE Success Story: Cruelty-free & Vegan Cosmetics
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From being the Femina Power Brand 2021 to CNBC's Most Trusted Brands 2021, RENÉE is ruling the cosmetics industry like never before!
Founded by Ashutosh Valani, Priyank Shah and Aashka Goradia Goble, RENÉE is an Indian makeup & cosmetic company that is creating a range of cruelty-free and vegan products. Since its inception, RENÉE has witnessed nearly 30x growth in revenue and is sitting on a target of 100CR GMV in the coming years.
StartupTalky interviewed Aashka Goradia Goble (Founder & Director, RENÉE Cosmetics) to know the Startup Journey and Story of RENÉE. Also get a glance on its business model, how it started, growth, founders & more.
RENÉE Cosmetics - Company Highlights
| Startup Name | RENÉE Cosmetics |
|---|---|
| Founders | Ashutosh Valani, Priyank Shah, Aashka Goradia Goble (Director) |
| Founded Year | 2018 |
| Headquarters | Ahmedabad |
| Sector | Beauty Cosmetics |
| Website | reneecosmetics.in |
RENÉE - About
RENÉE - Market/Industry Details
RENÉE - Founders and Team
RENÉE - Startup Idea
RENÉE - Products/Services offered
RENÉE - Name, Tagline and Logo
RENÉE - Business Model and Revenue Model
RENÉE - Funding
RENÉE - Shareholding
RENÉE - Startup Launch and Marketing Strategies
RENÉE - Challenges faced
RENÉE - Growth and Revenue
RENÉE - Competitors
RENÉE - Recognition and Achievements
RENÉE - Future Plans
RENÉE - About
RENÉE is an Indian makeup & cosmetic company creating a range of cruelty-free, vegan products that celebrate the spirit of the modern woman of today. It aims to create not just a brand, but a belief to liberate women with class, color and quality that’s been never-seen-before.
RENÉE - Market/Industry Details
The Indian cosmetics industry is one of the most prosperous industries in India and will continue to grow in the upcoming years.
Online sales are on an all-time high with increased internet penetration, also expanding the market size. People living in remote areas now have access to a range of beauty products without the need for a physical store, leading to a hike in both, demand and supply. RENÉE has ensured a strong digital presence across mediums to penetrate into the minds of this growing market.
Estimations suggest that the Indian Beauty Industry is expected to register an annual growth of 25%, and is estimated to be worth USD 20 billion by 2025.
"I'm excited to see the emergence of cruelty-free and vegan cosmetic products & will expect them to take the driver’s seat in the coming five years. While the color cosmetics will continue to have a great appeal, there is an increased focused on skincare which will boost the industry in the near future" says Aashka Goradia Goble (Founder & Director, RENÉE Cosmetics)
Varad Kitey
RENÉE - Founders and Team
Ashutosh Valani, Priyank Shah and Aashka Goradia Goble are the co-founders of RENÉE.
"RENÉE was envisioned by me (Aashka) as early as 2018 but it was along with the support and experience of Priyank & Ashutosh that gave the brand the direction I wanted to take it to" Aashka Goradia Goble (Founder & Director, RENÉE Cosmetics) added.
Priyank and Ashutosh first captured the male grooming market with their earlier venture, Beardo. With RENÉE, they wanted to enter & experience a new category all together and cater to the women of India, competing in a saturated market that was dying for innovation.
RENÉE currently has a team of 50 - 200 employees, and several other partners who help the company across different processes - from manufacturing to marketing. "We have carefully chosen the people who work on the brand- not just based on skillset, but also on the basis of shared ideologies" says Aashka Goradia Goble (Founder & Director, RENÉE Cosmetics)
Tanusha Verma
RENÉE - Startup Idea
"As someone who loves playing & experimenting with different looks and makeup, owning a brand of my own was something I always thought of, but came around to creating only when my friends & family encouraged me" reminisces Aashka Goradia Goble (Founder & Director, RENÉE Cosmetics).
With RENÉE, the idea was to create a brand that’s not about selling products, but a belief. Aashka wanted to provide Indian women with a brand that celebrates their free spirit & beauty with products that offer colors, class and quality unparalleled. There wasn’t a eureka moment, but in fact a dream that was brewing since very long that finally took flight!
"A lot of research went into understanding the market and competitors, and creating a niche for ourselves which was focused on innovation. Till today, that is our greatest USP" says Aashka Goradia Goble (Founder & Director, RENÉE Cosmetics)
Chayanika Goswami
RENÉE - Products/Services offered
With RENÉE, it’s about bringing something new to an industry that’s flooded with options, but lacking innovation. The cosmetic industry is growing exponentially and if there is a time to use it and create never-seen-before products to reach the right audience, it is now!
RENÉE has products that are easy-to-use, unique and specifically created keeping in mind its target group : whether it’s the Fab 5 Lipstick, Natural 3D Eyelashes or RENÉE's latest offering the Dual-Chamber Day & Night Serum.
Flagship Store
Renée Cosmetics has opened its first flagship location in Lucknow on February 9, 2023. The company stated in a LinkedIn post. The company stated in the LinkedIn post that "This new store aligns with our expansion plans of strengthening our retail footprint in India and across the world."
Princess
'Princess by RENEE' have launched on September 8, 2022, developing a line of exclusively for pre-teens items that have undergone dermatological testing, are chemically free, cruelty-free, and vegan.
Meaning of RENÉE and Logo
RENÉE means reborn or rebirth. RENÉE is also the name of Aashka's mother-in-law, who has been an unhindered support in the dream, actualization & journey of the brand and I could not be more thankful for her support.
"It has been a new beginning in multiple ways: for me, to make the transition from being an actor to an entrepreneur, and for the industry to welcome a new brand in the market, that is ready to take the industry by storm" says Aashka Goradia Goble (Founder & Director, RENÉE Cosmetics).
RENÉE - Business Model and Revenue Model
RENÉE is currently a digital-only brand, selling on its owned channels along with online marketplaces such as Amazon, Flipkart & more. It is already in the process of looking at expansion into offline stores and aims to create an offline presence across all 4 zones by the end of the year.
Rishabh Rathi
RENÉE - Funding
RENÉE has raised total of $8.2 million in 3 funding rounds.
Below is the funding details:
| Date | Stage | Amount | Investors |
|---|---|---|---|
| Jan 13, 2022 | Seed Round | $4.4M | Quiet Capital |
| Dec 17, 2021 | Non Equity Assistance | - | MassChallenge |
| Aug 5, 2021 | Seed Round | $3.8M | Quiet Capital |
RENÉE - Shareholding
In RENÉE, the founder holds 54.6% of the shares, with 30% from funding, 11.5% through enterprise ownership, 3.2% for ESOPs, and 0.7% from angel investors.
RENÉE - Startup Launch and Marketing Strategies
Online channels only: Performance marketing was a key in making the brand reach the audience. This was coupled with activating celebrity faces of the industry to highlight the brand products. The team at RENÉE harped the most on the innovative products such as the Fab 5 Lipstick, because that was something they knew that the community would be excited about.
The advantage of knowing the company's audience in and out is RENÉE's major USP: Whether it comes to creating the products or marketing them. RENEE has always been digital-first strategists. So the team has found a sweet spot for the brand in the midst of the right amount of performance marketing & content creation. Every content piece RENÉE creates is thought through and eye-catching… more than anything, it’s original! Along with that, the team at RENÉE are always listening to market places, reading digital trends and planning strategies accordingly.
"The part that sets our strategy apart from the rest is our constant focus on innovation. We wanted to break the trend of copying & repeating, and rather build some products that we knew would set us apart from the rest. Keeping in mind our women on-the-go, we have now created products that are easy-to-use, on-the-go and of the highest quality" says Aashka Goradia Goble (Founder & Director, RENÉE Cosmetics)
Manav Makhija
RENÉE - Challenges faced
"A big learning from 2020 was the dependency on trade windows, where the procurement is dependent on international vendors" added Aashka Goradia Goble (Founder & Director, RENÉE Cosmetics)
RENÉE team realized that their customer needs were changing so fast that it was important to Make in India, for India. And this is what RENÉE will continue to do - the team is strategizing to become more & more self-reliant by the day so as to provide its community a better & faster delivery time.
RENÉE - Growth and Revenue
Since its inception, RENÉE has witnessed nearly 30x growth in revenue and it is sitting on a target of Rs 100 crore as of 2022. Its biggest aim is to provide the users a premium experience at every touch point, from purchase to promotion, while keeping innovation at the center of it all.
"From where we are, it is a rollercoaster that only goes up! Innovation will always lie at the core of everything we do and you can very well expect lots more coming to the market" says Aashka Goradia Goble (Founder & Director, RENÉE Cosmetics)
RENÉE is looking to expand offline this year (2021) across key premium stores. It is slowly but steadily becoming more and more self-reliant by the day and targeting a 100cr GMV in the coming years.
Financials
RENÉE operating revenue has increased to Rs 100.4 crore in FY23 from Rs 32.40 crore in FY22. The profit or loss of the company is Rs 32.6 crore in FY23 and Rs 7.26 crore in FY22.
Expenses Breakdown
The total expenses of the company increased from Rs 39.7 crore in FY22 to Rs 145.4 crore in FY23.
EBITDA
Financial performance suffered a substantial decrease in FY23. The EBITDA margin plummeted from -21.15% in FY22 to -42.03% in FY23, expenses as a percentage of revenue rose from Rs. 1.23 in FY22 to Rs. 1.50 in FY23, and ROCE fell from -12.73% in FY22 to -22.85% in FY23, all of which point to declining profitability and rising costs.
| FY22-FY23 | FY22 | FY23 |
|---|---|---|
| EBITDA Margin | -21.15% | -42.03% |
| Expense/Rs of Op Revenue | Rs1.23 | Rs1.50 |
| ROCE | -12.73% | -22.85% |
RENÉE - Competitors
Some of the top competitors of RENÉE are:
- Lakme
- Maybelline
- Sugar
Sarika Anand
RENÉE - Recognition and Achievements
- Femina Power Brand 2021
- CNBC Most Trusted Brands 2021
RENÉE - Future Plans
- Expanding into skincare category
- Expand offline this year (2021) across key premium stores.
- Targeting a 100cr GMV in the coming years.
RENÉE - FAQs
What is RENÉE Cosmetics?
RENÉE is an Indian makeup & cosmetic company that is creating a range of cruelty-free, vegan products and celebrating the spirit of today's modern woman.
Who are the founders of RENÉE Cosmetics?
Ashutosh Valani, Priyank Shah and Aashka Goradia Goble are the founders of RENÉE.
What does RENÉE mean?
To the founder, Aashka Goradia, RENÉE means reborn or rebirth. RENÉE is also the name of her mother-in-law, who has been an unhindered support in the dream, actualization & journey of the brand.
Who are the top competitors of RENÉE?
Sugar Cosmetics, Lakme and Maybelline are the competitors of RENÉE Cosmetics
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