Leading venture capital and private equity firm SKS Capital has announced its strategic investment of $5 million in Grace, South Korea‘s largest aggregator of international health and beauty brands. The investment will be used to expand Grace’s business operations and pursue growth opportunities in the Asian market.
Expanding Business Operations in Asia
SKS Capital’s investment will enable Grace to expand its operations in the Asian market by focusing on scaling its operations, hiring personnel, and developing new service offerings. The funds will help Grace transform into a major player in Southeast Asia, leveraging SKS Capital’s expertise in marketing, distribution, and logistics.
According to the founder of Grace, Abraham Cho, the brand aggregator strategy has been to diversify its product offerings and to rely on the recession-resistant health and beauty industry. Grace is the largest supplier of Olive Young, South Korea‘s largest health and beauty retailer, and supplies to online channels and over 50,000 offline point-of-sales in Korea. The company has been growing its business by exporting Korean brands to over 60 countries via B2B and D2C channels.
Korean Beauty Brands on the Rise
Korean beauty brands are becoming increasingly popular among Asian consumers due to their innovation and quality. Grace’s strategic position in the Korean market and its extensive supply chain network makes it an attractive investment opportunity for SKS Capital.
Bridging Connections in Southeast Asia
SKS Capital plans to support Grace’s expansion by leveraging its strong presence in the beauty ecosystem of Southeast Asia. The firm has connections with supply chains, logistics, distributors, licensees, e-commerce, retailers, and celebrities in the region.
SKS Capital’s founder, Jack Chen, believes that Grace has always been successful because of its use of data and riding the K-beauty wave. By combining capital and resources on the ground in Southeast Asia, SKS Capital will be able to help Grace grow and succeed even further.
Continued Strategic Investment in Beauty and Personal Care Sector
This deal is part of SKS Capital’s continuous strategic investment in the beauty and personal care sector. The firm, with headquarters in Shanghai and Taipei, specializes in consumer-focused investments, including beauty and health D2C brands, F&B, distribution channels, e-commerce, beauty supply chain, and consumer enabling technologies. SKS Capital’s main focus is to source potential investments in the Asia-Pacific region and introduce its portfolio companies to new markets to drive business advancement.
Growing Asia-Pacific Beauty Market
The Asia-Pacific beauty market is expected to grow at a compound annual growth rate of 8.2% from 2020 to 2027, according to Grand View Research. The rising demand for personal care and beauty products in the region presents significant growth opportunities for Grace and other companies in the industry.
SKS Capital’s investment in Grace will enable the Korean company to expand its business operations in the Asian market and pursue growth opportunities. Grace’s strategic position in the Korean market and its extensive supply chain network make it an attractive investment opportunity for SKS Capital. The Asia-Pacific beauty market presents significant growth opportunities for the beauty and personal care sector, and SKS Capital is well-positioned to capitalize on these trends.
