Source: Practo
In a sign in keeping with larger trends in India’s startup ecosystem, healthtech platform MakeO, known for its dental and skin care verticals Toothsi and Skinnsi, closed a funding round for ₹54.7 crore (about $6.43 million). The round, which included existing investor and Pharmeasy CEO Siddharth Shah and Mahendra Shah, had the participation of some institutional investors too.
But behind the headlines, an ominous indicator of the times: a valuation that fell a whopping 57% since last round of funding just 15 months previously
A Strategic Reset in Valuation
The board of the startup recently approved 5,80,072 compulsorily convertible preference shares (CCPS) at ₹943.7 each, which means they now have a valuation of ₹1,055 crore ($124 million). This is a substantial decrease from their previous valuation of ₹2,231 crore ($265 million) when they raised $16 million back in January 2024.
The Numbers Related to the Round
₹20 crore will be contributed by Siddharth Shah in this round, followed by Mahendra Shah and 360 One, both of whom are committing ₹10 crore, and ₹4.35 crore will come from Paramark Ventures and Eight Roads Ventures. The rest will be contributed by Ashish Kacholia, Siddhant Partners, and R.B.A Finance & Investment Co. So far, Mahendra Shah has already transferred ₹10 crore.
The company plans to utilize the proceeds for general corporate purposes – likely to strengthen operational efficiencies and extend the runway in light of the shifting market landscape. From Aligners to an Integrated Aesthetic Platform
About MakeO
MakeO which was founded in 2018 by Arpi Mehta Shah, Pravin Shetty, Manjul Jain, and Anirudh Kal initially started off as an online clear aligner treatment company called Toothsi. Over the years it added two new skincare and haircare offerings under the Skinnsi brand, and in 2022 they took the leap of merging the two offerings into a single integrated platform for at-home aesthetic treatments.
MakeO, which is also endorsed by high profile celebrities including Anushka Sharma and Virat Kohli, labels itself a tech enabled and D2C health and beauty platform that targets urban millennials and GenZ consumers that want the convenience and care of medical grade treatments.
Accelerating Revenue, Reducing Losses.
The FY24 results for the company paint a rather mixed picture, operating revenue has slightly increased to ₹179 crores and losses have decreased 32% to ₹150 crores. While profit is still not on the horizon the tightening of the financials suggests the company is a maturing startup still adjusting to the realities of the market.
As reported on data platform TheKredible, MakeO has raised over $90 million in total funding to date, including a $40 million Series C round in May of 2022.
