Carlyle-backed beauty and wellness company VLCC has raised Rs 110 crore from alternative credit platform BlackSoil Capital as the company looks to accelerate its next phase of growth across beauty, wellness and personal care.
The financing is expected to support VLCC’s ongoing business requirements and expansion plans, including strengthening its operating platform, scaling its businesses and subsidiaries, launching new products and expanding its store network. The fundraise comes as the company looks to capitalise on rising demand for organised beauty and wellness services and products in India.
According to VLCC CEO Deepak Taluja, the financing will help the company execute its growth plans across its different business verticals. The company is also focused on expanding its physical presence while improving customer experience and strengthening its overall operating platform.
“This financing will enable us to pursue our growth plans across our businesses, including new product introduction and store network expansion,” Taluja said.
He added that the company remains focused on expanding its reach and building a stronger, future-ready platform as demand for organised beauty and wellness offerings increases.
VLCC’s business and expansion plans
Founded by Vandana Luthra in 1989, VLCC has developed from a beauty and wellness services company into an integrated platform spanning beauty and wellness services, personal care products and vocational education.
The company currently claims to have 310 locations across 139 cities, with operations covering India as well as international markets across South Asia, Southeast Asia, the Middle East and Africa.
VLCC’s portfolio includes its namesake personal care business, men’s grooming brand Ustraa, and the VLCC Institute of Beauty & Nutrition. The company acquired Ustraa as part of its strategy to expand its presence in the men’s grooming and personal care segment.
The latest financing is expected to provide additional capital for the company’s expansion across these businesses and support the growth of its subsidiaries.
Carlyle-backed VLCC
VLCC is backed by global investment firm Carlyle, which announced the acquisition of a majority stake in the company in January 2023. The private equity firm’s investment marked a significant institutional backing for the Indian beauty and wellness company as it sought to scale its operations and expand its presence across markets.
The company has since continued to build its presence across beauty services, personal care and wellness, while also expanding its portfolio through businesses such as Ustraa.
VLCC’s latest fundraise comes at a time when India’s beauty and personal care market is seeing increased activity from established companies as well as new-age brands, with businesses expanding their product portfolios, physical networks and digital distribution channels.
BlackSoil’s investment in VLCC
For BlackSoil Capital, the financing adds VLCC to its portfolio of high-growth businesses receiving alternative credit solutions.
Ankur Bansal, managing director of BlackSoil, said VLCC’s established brand, operating platform and presence across multiple markets position the company to benefit from the expansion of India’s beauty and wellness industry.
“The company has built a strong operating platform and is well-positioned to capitalise on the significant growth opportunity within India’s expanding beauty and wellness industry,” Bansal said.
Founded in 2016, BlackSoil is an alternative credit platform that provides financing solutions to growing businesses for both short- and long-term capital requirements. The firm said it has $275 million in assets under management.
The Rs 110 crore financing gives VLCC additional capital to pursue its expansion strategy, with new product launches and store network growth expected to remain among the key priorities as the company works to strengthen its position in India’s organised beauty and wellness market.
