Dear Dahlia, a K-beauty brand well-known for its presence in French department stores, has stepped forward to attract new investment worth 5 billion won. This is two years after attracting Series C investment in 2022. Although there were rumors of a stake sale, Dear Dahlia stated that its top priority after raising additional funds is an initial public offering (IPO).

According to the investment banking (IB) industry on the 15th, Dear Dahlia operator Baram International recently began attracting new investments. Amore Pacific Group, JS Corporation (KRW 14,370 ▲ 160 1.13%) It is reported that follow-up investment discussions are underway with existing investors, and the goal is to issue new stocks worth about 5 billion won for a corporate value of 100 billion won.

This investment round is a bridge round that raises small amounts of funds between each investment stage. Baram International completed Series C investment of 16.5 billion won in February 2022. At that time, JS Corporation, Korea Kolmar, and Marker Apparel participated as strategic investors (SI).

In addition, Amorepacific Group, an SI, participated early in Series A in 2018, and financial investor (FI) LB Investment (4,110 won ▼ 15 -0.36%) , Smilegate Investment, etc. are also listed as major shareholders. The accumulated investment amount is approximately 42.5 billion won. The largest shareholder is Park Rae-hyun, CEO of Baram International (39.52% stake).

Baram International was founded in 2014 as a marketing agency. Its main business was overseas online marketing of K-beauty brands, and it gained attention in 2017 when it launched Dear Dahlia. Its introduction of vegan color cosmetics instead of basic cosmetics, which are the mainstay of K-beauty, was a hit overseas.

Dear Dahlia entered France, the home of cosmetics, in 2019, two years after the launch of Baram International. Starting with an exclusive stand at the luxury department store 'Galerie Lafayette' in Paris, France, it expanded to the US, Italy, and Germany. It has approximately 300 global stores.

Baram International plans to use this 5 billion won bridge investment to expand overseas sales channels. This is because the demand for color cosmetics is starting to increase again due to the COVID-19 pandemic. Recently, the company has also entered the Middle East, including the United Arab Emirates (UAE) and Saudi Arabia, and is seeing results.

A representative for Baram International said, “Our sales last year doubled compared to the previous year, and we are recovering quickly,” and added, “Our top priority is to pursue an IPO in the mid- to long-term after turning a profit this year.” He added, “The rumors of a management stake sale are not true.”

Source: Biz Chosun