NAMA Beauty, an Indonesia direct-to-consumer (D2C) cosmetics and skincare company said Monday it has completed its $5 million seed funding round led by AC Ventures.
PT SiCepat Ekspres Indonesia (SiCepat Ekspres) and PT Digital Mediatama Maxima Tbk (DMMX) also participated the round.
NAMA Beauty said in a statement that it plans to use the new funding for research and development (R&D), marketing and branding, hiring more talents, and launching a new second-line brand.
Through existing infrastructure and know-how, the company’s vast logistical and distribution capabilities via partnerships with DMMX and SiCepat Ekspres allow for tremendously scalable operations, NAMA Beauty added.
“I noticed that the beauty industry is one of the most resilient industries in terms of growth, although not without its own challenges. Through the partnerships with SiCepat and DMMX, we will leverage each of our own unique strengths to further assist NAMA in building a high-growth beauty brand and look forward to supporting the company as it scales to reach its full potential,” said Pandu Sjahrir, Founding Partner of AC Ventures.
By working closely with DMMX, NAMA Beauty will have access to offline market distribution networks such as the Sampoerna Retail Community (SRC), spread across more than 20 cities in Indonesia. NAMA Beauty will leverage DMMX’s vast distribution network, sell their products in minimart chains, and access thousands of signage retail and TransJakarta networks, thereby allowing for broader customer reach and brand visibility.
Furthermore, the company will sell its products in a digital commerce platform for the SRC as provided by DMMX, further expanding NAMA Beauty’s distribution channel for a faster scale. On the other hand, SiCepat Ekspres will serve as the logistics partner of NAMA Beauty by assisting the company in fulfillment and delivery services.
“SiCepat Ekspres will be a shipping partner who delivers NAMA Beauty’s cosmetic products to support NAMA Beauty’s growth as a local cosmetic brand that is ready to join the Indonesian cosmetic market. With good quality, competitive price, and supported by SiCepat’s quality delivery, we believe that NAMA Beauty will be able to break into the Indonesian cosmetic market and become a cosmetic brand that is believed by the Indonesian community,” said The Kim Hai, Chief Executive Officer of SiCepat Ekspres Indonesia.
NAMA Beauty Chief Executive Officer Luna Maya also said: “This is indeed an exciting time for Indonesia. We believe in the synergy to grow together and maximize the opportunities and momentum.”
NAMA Beauty is one of the local beauty brands from Indonesia built-in 2019 for young spirited women and men. Positioning as a brand that helps customers express themselves to be whoever they want to be, NAMA Beauty provides affordable luxurious products for everyday essentials such as decorative cosmetics, skincare, health, and beauty care.
The company is set to become a D2C brand that offers high-quality skincare and beauty products at affordable pricing and possesses a strong offline distribution network that allows the brand to have a greater reach to customers throughout Indonesia.
The company was co-founded by Indonesian star Luna Maya and retail entrepreneur Marcel Lukman, who co-founded Atmos and The 707 Company which have brands such as Fred Perry, Nudie Jeans, Superga, and Melissa.
Combining Luna Maya’s passion and her creative vision, Marcel Lukman’s expertise in retail, and unparalleled consumer interest, NAMA Beauty believed that the company and its team can grow and become one of the leading brands in Indonesia and the region.
The company’s prospect is also supported by the promising growth of the Indonesian beauty market. Colour cosmetics in Indonesia have immense market potential, estimated to reach $1 billion in 2023, growing at a compound annual growth rate of 16.9 percent. Besides, Indonesia has a population of 270 million, of which 50 percent are women, and 51 percent are internet users.
According to NAMA Beauty, appetite and confidence for locally produced cosmetics are growing, and there’s a rising demand in the market for high-quality yet affordable beauty products.
Furthermore, Indonesia’s cosmetic market and growing population of young people create an opportunity for beauty brands to grow and increase their market share.
With the latest funding, NAMA Beauty is set to launch a second brand that targets below market prices without having to sacrifice the products’ superior quality.
“Luna Maya’s passion and ingenuity on beauty and wellness can be seen in how she has developed NAMA as a brand. Aiming to make customers feel more empowered through their products, NAMA’s team is laser-focused on making quality beauty and skincare products more accessible across Indonesia,” said Laura Lestari, Vice President Investment of AC Ventures.
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