New Delhi, Jun 15 (KNN) Premium cosmetics maker Lotus Herbals has announced the creation of a USD 50 million innovation fund aimed at investing in beauty startups. 

The move comes as India's beauty and cosmetics market experiences rapid growth, driven by the country's large, young population.

Nitin Passi, managing director of Lotus Herbals, stated that the Lotus Innovation Fund will focus on patent-driven startups in need of capital. 

"We will invest in startups with an innovation plus growth mindset," Passi said. The fund plans to back two to three companies annually, supporting them for five to seven years with a focus on the Indian market.

This is the second such fund in India, following the 2022 launch of a strategic early-stage investment fund by Estee Lauder-backed New Incubation Ventures and beauty retailer Nykaa.

India's beauty industry is projected for significant expansion. A recent HSBC Global Research report forecasts that the beauty and personal care sector could grow five times larger over the next 15 years, with some categories potentially increasing tenfold.

Lotus Herbals has already invested in several beauty and wellness brands, including Fixderma India, Conscious Chemist, Vanity Wagon, and Better Beauty.

The article highlights the growing trend of established beauty companies investing in startups to foster innovation and capture emerging market opportunities.

(KNN Bureau)