Honestly, an AI-powered beauty and personal care (BPC) review platform, has secured Rs 3.2 crore in a pre-seed funding round led by Better Capital. The funding round also saw participation from Kunal Shah-led QED Innovations, as well as senior leaders from Flipkart, Polygon, and Cred.
The funds raised will primarily support the initial product launch and help achieve early signs of product-market fit. Co-founder Vivek Madani highlighted the platform’s focus on addressing significant challenges in the BPC sector, including the inability to return products and the complex array of attributes that influence product efficacy and user experience.
Founded in April 2024 by Karishma Rathaur and Vivek Madani, Honestly aims to facilitate peer-to-peer connections for sharing detailed product reviews. The platform utilizes AI to analyze product ingredients, aiding users in understanding how new products align with their personal care routines.
The revenue model centers around business-to-business (B2B) partnerships, offering brands access to the platform’s APIs and integration of widgets into their product pages. Once validated in the business-to-consumer (B2C) segment and with sufficient proprietary data, Honestly plans to extend its services to ecommerce platforms through API integrations.
Looking ahead, the startup intends to scale its user base to 1 million in India and explore expansion opportunities, potentially targeting regions like the UAE and Western countries with significant Indian diaspora.
The investment comes at a time when India’s beauty and personal care market is projected to grow at a compounded annual rate of 10% from 2022 to 2027, reaching an estimated size of $30 billion, according to Redseer Strategy Consultants and Peak XV Partners.
Karishma Rathaur expressed enthusiasm about the funding, emphasizing the opportunity to build a robust team in engineering and marketing to further strengthen Honestly’s market presence.
Vaibhav Domkundwar from Better Capital commented on the investment, noting the growing demand among consumers for effective skincare solutions amidst a complex landscape influenced by social media and varied product choices.
Overall, Honestly’s funding round underscores its strategic approach to revolutionizing the BPC industry with AI-driven insights and user-centric solutions, backed by strong investor confidence in its innovative business model and growth potential.
