Private equity company SKS Capital, which has its headquarters in China, has announced a strategic investment in Grace, the biggest collection of foreign health and beauty brands in South Korea.
With a $5 million investment, SKS Capital announced on Monday that it is the Grace Series B funding’s lead investor.
The capital, according to the statement, will be applied to scaling operations, hiring staff, and creating new service offerings as Grace looks to grow its operations and pursue growth opportunities in the area.
“The brand aggregator strategy has been to diversify our product offerings and to rely on the recession-resistant Health and Beauty industry,
“With SKS’ expertise in marketing, distribution, and logistics, Grace will be able to transform into a major player in Southeast Asia,” said Grace Founder Abraham Cho.
Olive Young, the biggest health and beauty retailer in Korea, receives the bulk of its supplies from Grace, which also provides goods to more than 50,000 offline stores and online channels in the country.
Through partnerships and direct-to-consumer (D2C) and business-to-business (B2B) exports of Korean brands to more than 60 countries, the company has been expanding its business.
The statement claims that Asian consumers are increasingly drawn to Korean beauty brands because of their innovation and high quality.
In Southeast Asia, where SKS has a significant presence in the beauty ecosystem, including supply chain, logistics, distributors, licensees, e-commerce, retailers, and connections with celebrities, SKS Capital said it will help Grace expand by bridging connections.
“Grace has always been successful because of their use of data and riding the K-beauty wave,
“Now combining our capital and resources on the ground in Southeast Asia, we will be able to help Grace grow and succeed even further,” said SKS Capital Founder Jack Chen.
The Asia-Pacific beauty market is anticipated to expand at a compound annual growth rate (CAGR) of 8.2 percent from 2020 to 2027, according to SKS Capital, which cited Grand View Research.
SKS Capital, which has offices in Shanghai and Taipei, has been making strategic investments in the beauty and personal care industry continuously.
