Key Takeaways
- Lico Cosmetics raised a new round from Bewater Funds.
- Sector: Consumer, Retail.
- Geography: Spain.
Analysis
Bewater Funds has made its 21st investment, backing Lico Cosmetics, a digital-native beauty brand focused on science-backed skincare solutions. This strategic infusion of capital aims to accelerate the growth of a company that has successfully carved out a niche in the competitive beauty market by prioritizing efficacy and natural ingredients through an exclusive e-commerce model.
Lico Cosmetics distinguishes itself by offering targeted treatments for specific skin concerns, such as firmness and hyperpigmentation. The brand's approach merges advanced engineering principles with natural formulations, delivering tangible results while maintaining a commitment to skin and planetary health. Operating within the mid-tier segment of the women's beauty market, its products are priced between €50 and €100, appealing to a discerning consumer base.
The investment aligns with significant market trends. The broader beauty products market in Spain generated over €8 billion in revenue in 2021, experiencing double-digit growth. Within this, the skincare segment alone accounted for €2.66 billion. Bewater Funds recognizes the immense potential of Lico Cosmetics' direct-to-consumer e-commerce strategy, a channel that is experiencing rapid expansion and is projected to dominate future sales in the sector. The online beauty sales channel in Spain, though smaller at under €500 million in 2021, saw a remarkable 58% growth that year and is expected to continue its upward trajectory.
Founded by Estefanía Ferrer, a chemical engineer with prior experience at Airbus, Lico Cosmetics was born out of a personal quest for effective skincare solutions. Ferrer's entrepreneurial vision has propelled the company from €77,000 in revenue to €2 million within the last two years, all while maintaining positive cash flow and operating without external capital until this investment. The management team also includes Juan Sabaté, a telecommunications engineer and former operations lead at GE Healthcare, bringing a wealth of operational and technical expertise.
Bewater Funds highlighted the company's strong financial performance, noting its cash-generative nature and accelerating sales momentum in 2022 and 2023. The firm sees substantial opportunity for brand building and international expansion, particularly into European markets. The founders' complete ownership and efficient capital management were also key factors in the investment decision, underscoring a robust foundation for future growth.
This partnership signifies a pivotal moment for Lico Cosmetics, providing the resources to scale its operations, enhance its product development pipeline, and broaden its market reach. The investment underscores the growing investor appetite for digitally-native brands that demonstrate strong product-market fit, a clear value proposition, and a commitment to sustainable practices within the thriving beauty industry.