Moxie raises $15M led by Bessemer to double down on R&D and distribution

Direct-to-consumer haircare brand Moxie has raised $15 million in a funding round led by Bessemer Venture Partners, marking a fresh capital infusion after a $2.1 million round last year.

The round also saw participation from existing investors, including Fireside Ventures and a set of angel investors, along with new angels such as Navin Parwal, Sangeet Agarwal, and Arjun Purkayastha.

While the company does not plan to move away from the haircare category in the near term, it plans to deploy a majority of the fresh capital towards research and development. A portion of the funding will also be used to scale up the team and expand distribution, particularly across modern trade and quick commerce platforms. The remaining capital is expected to be allocated towards working capital requirements, as rapid scaling necessitates holding higher inventory levels.

“We are not in the business of picking up a hero ingredient, unlike some skincare products, and building something around it. At a molecular level, formulation is far more complicated. This kind of innovation is resource-intensive and takes a lot of time, sometimes a couple of years. So we create our own IPs. All our formulas are built from scratch,” explained Nikita Khanna, co-founder in a conversation with YourStory.

Moxie currently doesn't have any patents for its proprietary formulas; it has a portfolio of 19 products, all within the haircare category. This includes essentials such as shampoos and conditioners, as well as styling-first products like finishing sticks and hair wax sticks.

“Moxie exists on the beauty side of haircare, not the clinical side,” shared Khanna, adding that the company is doubling down on its styling-first portfolio, which currently includes SKUs such as finishing sticks and hair wax sticks.

India is quite omnichannel, even for new-age brands, Khanna said. Moxie is planning forays into salon partnerships and modern trade, and will also explore specialty cosmetics stores over the next six months. The company has seen strong repeat purchase behaviour on quick commerce platforms, with consumers increasingly using these channels for replenishment once products run out.

Founded in 2023 by Khanna and Anmol Ahlawat, the company has always been Contribution Margin 2 positive but doesn't have a single hero product-driven strategy, claims Khanna. It crossed Rs 100 crore in ARR by November and has managed to nearly fourfold its monthly revenue over the past year, shared the company in a press note.

“We see this as a category-defining generational company. Moxie is more than hair; it’s a feeling, a character. Where it goes is best answered by Nikita. There’s a lot to do within hair itself. The brand architecture is flexible, but the focus remains hair,” Anant Vidur Puri, Partner at Bessemer Venture Partners, told YourStory.