India’s K-beauty boom: How D2C growth and seed-stage bets propelled it to No. 3 globally

In a beauty market where trends change faster than a swipe on Instagram, Korean beauty standards have remained consistently popular over the past two decades. And despite the rapid churn of skincare brands and fleeting social media trends, Indian interest in K-Beauty is growing stronger.

Backed by an expanding beauty market and the rise of direct-to-consumer (D2C) brands, India now stands as the third-largest investor in the global K-Beauty space, behind South Korea and the U.S, according to a recent Tracxn report.

Globally, K-Beauty startups have raised a total of $453 million to date. Despite a slowdown in 2024, with only $975,000 raised throughout the year, the sector has already secured $4.9 million in just the first four months of this year.

South Korea leads K-Beauty funding with $250 million, followed by the U.S. with $199 million. India ranks third, contributing a modest $4 million. However, there is significant potential for K-Beauty brands in the world's eighth-largest beauty market. According to Statista, the K-Beauty market in India is projected to exceed $1.3 billion by 2032.

Globally, there are over 1,100 companies in the K-Beauty sector, though only 74 have secured external funding. While the exact number of K-Beauty brands in India isn't publicly known, interest is clearly growing.

Nevertheless, a growing number of Indian brands are collaborating with globally renowned K-Beauty brands, reflecting the rising popularity and market potential of the segment in India.

“We’re thrilled to bring Neaf Neaf to India. The response from our community has already been incredible, and we’re excited to scale the brand across India,” says Radhika Ghai, CEO and founder of kindlife, one of the brands that have recently gained immense popularity on social media platforms.

The Tracxn report revealed that early and seed-stage rounds have driven the 2025 recovery, with active participation from firms such as Barlon Capital and Blueprint. International players like Company K Partners and SmileGate Investment have also backed early-stage deals. However, seed funding has yet to register any deals this year.

Memebox remains the highest-funded K-Beauty startup, having secured $193 million. GP Club and Clio Professional follow with $67.5 million and $50.1 million, respectively. Color cosmetics lead in total funding at $245 million, though recent capital has flowed into multi-category K-Beauty brands.

With investor confidence returning and a focus on innovative products, K-Beauty’s second wave seems poised for a strong and sustained revival—especially in India.