The Annual Funding Report 2024 by YourStory Research brings an in-depth view of the state of funding in the Indian start-up ecosystem and the key trends governing the flow of money in 2024.
While year 2023 saw considerable growth in the beauty, wellness and personal care segments in India’s start-up ecosystem, year 2024 saw a different turn of economic trend. A report by YourStory Research analyses the top trends for Indian start-up ecosystem in 2025 that will applicable to the movers and shakers from the beauty-verse, too.
1. Funding resurgence:
After a challenging 2023, the Indian startup ecosystem saw a significant recovery in 2024, raising $13.2 billion, a 22 per cent increase from the previous year. This resurgence is expected to continue into 2025, with early-stage startups (pre-seed to Series A) receiving substantial backing from venture capitalists.
2. Sector growth:
The hair, beauty, personal care, and wellness sectors are likely to see growth, driven by increasing consumer demand for self-care and wellness products. The quick commerce sector, which includes beauty and personal care products, has shown promising signs of economic viability, with major players like Swiggy, Zomato and Zepto raising significant funds.
3. AI and technology integration:
The integration of AI and technology in these sectors is expected to drive innovation and efficiency. AI-enabled services and solutions are becoming more prevalent, with startups leveraging technology to offer personalised and efficient services to consumers.
4. Hybrid models:
The adoption of hybrid models, combining online and offline engagement, is gaining traction. This approach is particularly relevant for the wellness sector. This is because personalised, in-person experiences are valued alongside the convenience of online services.
5. Regulatory changes:
The abolition of the angel tax and other regulatory changes are likely to create a more favourable environment for startups. This will encourage more investments and reduce the compliance burden on early-stage startups.
6. Consumer trends:
There is a growing emphasis on sustainability and ethical practices in the hair, beauty, personal care, and wellness sectors. Consumers are increasingly seeking products that are environmentally friendly and ethically sourced.
7. Market expansion:
Startups in these sectors are expanding their reach beyond major metros to tier II and III cities, tapping into new consumer bases and driving growth in previously underserved markets.
Overall, the report paints an optimistic picture for startups in India. There are significant opportunities for growth and innovation in the hair, beauty, personal care and wellness sectors in 2025.
Representational Banner Photo|Credits: Freepik
