Pilgrim raised ₹200 crore in primary and secondary funding

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Pilgrim, a leading direct-to-consumer (D2C) beauty and personal care brand, has successfully raised ₹200 crore ($23 million) in a funding round consisting of both primary and secondary transactions. The round saw participation from existing investors, including Narotam Sekhsaria Family Office (NSFO), Vertex Ventures SEA, Sattva Family Office, and Mirabilis Investment Trust. Additionally, new investors, Vertex Growth Fund and Anicut Equity Continuum Fund, joined the round, reinforcing strong confidence in Pilgrim’s future. This investment brings Pilgrim’s total funding to approximately $50 million and its pre-money valuation to an impressive ₹3000 crore ($350 million).

With this fresh capital, Pilgrim aims to expand its offline distribution network and further enhance its research and development (R&D) capabilities. The brand is already profitable in the online segment and is now working towards building a sustainable omnichannel presence. Founded in 2019 by Anurag Kedia and Gagandeep Makker, Pilgrim offers a diverse product portfolio across skincare, haircare, makeup, and fragrances. The company serves customers in over 25,000 pin codes and has a robust presence on leading e-commerce platforms such as Amazon, Nykaa, Flipkart, Zepto, Blinkit, and Instamart.

Pilgrim currently operates 10 exclusive brand outlets (EBOs) in Mumbai, Bengaluru, and Hyderabad and plans to double this number by the end of 2025. The company recorded a 2.6X growth in operating revenue, reaching ₹198.79 crore in FY24 from ₹76 crore in FY23, with controlled losses increasing by only 14% to ₹26.34 crore. With a gross Annual Run Rate (ARR) of ₹800 crore, Pilgrim aims to achieve an ARR of ₹1000 crore by the end of 2025.

1. Pilgrim’s Business Model and Revenue Streams

1.1 D2C and Ingredient-Led Formulations

Pilgrim operates as a D2C beauty and personal care brand, focusing on ingredient-led formulations inspired by global beauty traditions. The company sources ingredients from France, Korea, Spain, Australia, the Amazon Rainforest, and Swiss glaciers, offering a unique product range.

1.2 Revenue Generation

The brand generates revenue primarily through online sales via its website, mobile app, and third-party e-commerce platforms. Additionally, its offline revenue streams include retail distribution in 10,000+ stores and exclusive brand outlets (EBOs).

1.3 Omnichannel Sales Contribution

The online segment contributes 80% of Pilgrim’s revenue, while offline sales account for 20%. With plans to expand offline stores and retail partnerships, Pilgrim is aiming for a more balanced omnichannel presence in the future.

2. Founders and Background

2.1 Leadership and Experience

Pilgrim was founded in 2019 by Anurag Kedia and Gagandeep Makker, who bring extensive experience in consumer products and business strategy.

2.2 Entrepreneurial Journey

Kedia has a background in wellness and personal care, previously co-founding a successful wellness startup. Makker has expertise in scaling digital-first brands and creating innovative business models in the beauty industry.

3. Growth and Expansion Strategy

3.1 Revenue Growth and Profitability

Pilgrim has raised ₹200 crore funding. in the past few years Pilgrim, has shown remarkable growth, with revenue increasing from ₹76 crore in FY23 to ₹198.79 crore in FY24. The company maintains controlled losses, with only a 14% increase in FY24, despite aggressive expansion.

3.2 Utilization of Fresh Funding

The latest funding will fuel:

• Expansion of offline distribution, including doubling its current 10 EBOs
• Strengthening R&D to enhance its product innovation
• Achieving an omnichannel revenue model by optimizing online and offline sales

4. Competitive Landscape

4.1 Key Competitors

Pilgrim competes with prominent D2C brands like Mamaearth, Wow Skin Science, MCaffeine, and Plum Goodness. These brands also emphasize natural ingredients and digital-first strategies.

4.2 Pilgrim’s Differentiation

Unlike competitors, Pilgrim differentiates itself with globally sourced ingredients and a strong focus on science-backed formulations.

5. Funding and Valuation

5.1 Investment Breakdown

The ₹200 crore funding round raised by Pilgrim consists of primary investments, which directly contribute to Pilgrim’s growth, and secondary transactions, where existing investors sell shares to new investors.

5.2 Valuation and Market Confidence

Pilgrim’s pre-money valuation now stands at ₹3000 crore, demonstrating substantial investor confidence in the brand’s trajectory.

6. Industry Trends and Insights

6.1 D2C Market Growth

The D2C beauty and personal care segment in India is witnessing significant growth, driven by rising disposable income, demand for premium products, and digital adoption.

6.2 Omnichannel Expansion Trends

The increasing trend of omnichannel expansion among D2C brands highlights the importance of an offline presence, especially in premium beauty products where customer experience plays a crucial role.

7. Learning for Startups and Entrepreneurs

7.1 Sustainable Omnichannel Growth

Startups should not rely solely on digital channels but explore offline expansion for long-term sustainability.

7.2 Strategic Investment Utilization

Securing funds is crucial, but utilizing them wisely in R&D and expansion is key to staying competitive.

7.3 Global Ingredient Sourcing

Differentiation in product offerings, such as sourcing unique global ingredients, can set brands apart from competitors.

7.4 Balancing Profitability and Growth

While expansion is necessary, maintaining controlled losses and a clear path to profitability is essential.

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