Founders & their story

• Pranali Janbandhu
• Vailina Tulsani

India’s youthful population, comprising 22 crores teenagers, represents a demographic with unique preferences—limited budget and a desire for instant gratification. Understanding their mindset, a teenage-centric makeup brand emerges, catering to their needs and capturing their hearts. The brand focuses on formulations crafted from skin-friendly ingredients such as witch hazel and avocado oil, ensuring a safe and trendy appeal. With a diverse range of products, including 22 vibrant eye liners, lip glosses, nail paints, and comprehensive makeup kits, the brand has successfully processed 30,000 orders.

Notably, eyeliners stand out as the star product, contributing to a significant 80% of total sales. The makeup market in India has a robust size, ranging from 10,000 to 12,000 crores, with the teenage segment accounting for a substantial 2,000 to 2,500 crores. Leveraging the power of social media, the brand has amassed a considerable following on Instagram, with 18,000 engaged followers. The community-driven approach resonates with the teenage audience, fostering brand loyalty and advocacy.

In terms of financial backing, the venture has raised an impressive 5.3 crores, reflecting investor confidence in the brand’s potential. With a strong foothold in the teenage makeup niche and a growing market presence, the brand is poised for further success in the dynamic Indian beauty industry.

About the company

Elitty stands as India’s cherished Gen Z Makeup brand, offering a vibrant array of coloured cosmetics. Founded and operated by a collective of close-knit friends, former teenagers, and a driven team of exceptional women, they bring forth a brand deeply attuned to the realities of adolescence. Having traversed the highs and lows of those formative years themselves, they empathize with the challenges, moods, and makeup preferences of today’s teens.

Their mission is to provide what they consider the purest, most authentic makeup choices for teenagers, supporting them in navigating their evolving relationship with cosmetics as they carve out their identity in the world. Their makeup formulations are tailored to be gentle on teenage skin, infused with nourishing ingredients such as Witch Hazel, Amla, Avocado Oil, and Vitamin E. It’s makeup that’s not only fun and vibrant but also earns the approval of parents.

Revenue

Pricing the eye liner competitively at 499 INR, the projected sales for FY 23-24 are estimated at an impressive 2 crores. Breaking down the figures, till October of the financial year, the brand has already achieved sales of 1.13 crores. In November 2023 alone, the sales reached 11 lakhs.

While the revenue performance is notable, it’s essential to consider the financial health of the business. The EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the specified period stands at -10 lakhs, indicating a temporary negative operating profit. The B2B gross margin is 36% and the B2C gross margin varies between 75%-80%.

Founders’ Ask 

1 crore for 4% equity at the valuation of Rs. 25 crores.

Offers:

Anupam: 1 crore for 15% equity at the valuation of Rs. 6.67 crores.

Founder’s Counteroffer:

Offer 1: 1 crore for 6% equity at the valuation of Rs. 16.67 crores.

Offer 2: 1 crore for 9% equity at the valuation of Rs. 11.11 crores.

No Deal

Reasons for no deal

Namita: The valuation was not justified.

Vineeta: Consider reducing the price point.

Aman: Too much money will have to be invested to get the company back on track.

Ritesh: They have figured out the customers, but they need to align their plans on what to do with the money – how to become profitable and successful.