CHOSEN is a famous skincare brand based in Chennai that has already established its niche through its model of clinic-to-consumer. CHOSEN has been able to secure $5 million in a Series A financing round. This major investment was led by Fireside Ventures. The round also saw the involvement of BOLD, a corporate venture capital fund of L’Oréal, and Alkemi Growth Capital. The round included investments by a group of angel investors, including CaratLane co-founder and former CEO Avnish Anand, and Chandan Asokan, KC Nischal, Punit Saraogi, Nishita Ranka, and Mikki Singh.
Brand success and product development
CHOSEN was founded in 2020 by Renita Rajan to produce science-based skincare solutions specifically aligned to Indian melanin-rich skin. The differentiation mechanism of the brand is well-established based on the science of the exposome, the study of all external and internal factors influencing the health of the skin.
The product development of it is centered on four main areas of aging: pigmentation, skin texture, contour, and hair aging. CHOSEN provides a wide view of dermatology by introducing a balance between clinical interventions and the home-based approach.
The success of the brand lies in its long history of operations, which is anchored on the insight gained through more than 150,000 professional consultations. This clinical database enables CHOSEN to run an exclusive hybrid business model of B2B and D2C. The model helps the patients to have a smooth transition into the patients who undergo skincare procedures under the guidance of medical authorities, and afterwards make their own follow-up.
CHOSEN also has a portfolio of about 58 SKUs across its doctor-led and D2C segments, and its products are also prescribed in over 2,000 clinics nationwide. This two-channel strategy has held tremendous success, with the company owning its own online platform, which now contributes almost 95% of the total digital sales.
Capital deployment and competitive landscape
The new capital of $5 million will play a major role in the overall expansion plans of the startup. The company, as indicated in its press release, plans to use the proceeds to first strengthen its research and development (R&D) capabilities and expand its pipeline of evidence-based products.
In addition to its domestic objectives, CHOSEN is gazing into the future and is planning to go global. The company actively pursues development of opportunities to enter international (skin color) markets, to be materially positioned in areas of Latin America and East Asia.
The regions exhibit similar dermatological profiles and demands, which make them strategically suitable to the current product expertise of the brand. This global vision highlights the possibility that the evidence-based model by CHOSEN can be scaled further outside the Indian market.
Within the skincare industry, which is highly competitive, CHOSEN has managed to build a strong customer base, which serves as the primary driver of its revenue, accounting for approximately 70% of its total revenue. The brand is especially expressive among the 30-50 age group of women who are increasingly interested in highly specific and clinically verified products to treat skin aging and texture.
CHOSEN stands out among mass-market beauty brands because of its identity as an evidence-based, doctor-led brand. It is now operating in an environment where they are competing with international giants like Avene, Heliocare, Cetaphil, Sebamed, Shiseido, and Dr. Sturm.
Conclusion
CHOSEN’s successful $5 million Series A round represents a major endorsement of its unique, dermatologist-backed business model. By establishing itself in thousands of clinics and by controlling the digital domain, employing a repeat-customer-driven income model, CHOSEN has proven that science-driven dermatology can find substantial appeal in the Indian market.
With its continued R&D growth and international market expansion, CHOSEN can become a household name in evidence-based skincare, which can transform the experience of consumers tackling everything, including pigmentation and hair aging.
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