The Founders Inc., which operates the skincare brand "Anua," has strengthened its partnership with the beauty distribution company YesAsia Holdings Limited in Hong Kong through an equity investment. The Founders plans to accelerate its global expansion by widening its distribution network with this investment.
The Founders operates consumer brands, including Anua, pet supplies "Project 21," and dermo hair care "FROM LABS," selling products in over 160 countries worldwide.
According to industry sources on the 29th, The Founders recently signed a contract to acquire 4.1 million new shares issued by YesAsia Holdings through a third-party allocation of paid-in capital at a price of 5.55 Hong Kong dollars (HKD; 1 HKD is approximately 178 won) per share. The total investment amount is about 4 billion won. If approved by the Hong Kong Stock Exchange by the 30th of next month, The Founders will secure an equity stake of approximately 1% in YesAsia Holdings.
YesAsia Holdings is a Hong Kong company that operates a global B2B (business-to-business) wholesale platform "AsianBeautyWholesale" and a B2C (business-to-consumer) platform "YesStyle." It hosts over 400 brands, including famous K-beauty brands like Anua, MediCube, and Dalba. About 90% of its revenue is reported to come from K-beauty distribution.
YesAsia Holdings has its own logistics system, including warehouses using autonomous mobile robots (AMR) in various countries, such as the United States and Europe. The cash secured from this investment by The Founders will also be used for business expansion, such as securing overseas warehouse inventory.
The brand Anua, operated by The Founders, debuted in the market in 2019 with a toner utilizing plantain and gained recognition through the 2022 CJ Olive Young Awards. Since its first overseas expansion in 2021, about 90% of its total revenue now comes from abroad.
Anua was selected as a top brand on Amazon last year. At the large shopping event "Mega Sale" hosted by Japan's Qoo10, it recorded overall sales number one for three consecutive quarters.
Additionally, Anua entered the online platforms of the largest drugstores in the U.S. and the U.K., Ulta Beauty and Boots, respectively, in October and December last year. It is also expanding its presence in local offline stores. Last month, it entered India's largest beauty platform, "Nykaa."
Fueled by Anua's success, The Founders recorded sales of 427.8 billion won and operating profit of 146.7 billion won last year. Compared to the same period last year, sales increased by 198.6% and operating profit increased by 263%.
With this equity investment, The Founders is expected to strengthen its cooperative relationship with YesAsia and accelerate its overseas expansion. Last year, YesAsia's sales distribution by region was 39% in Europe, 34% in the U.S., 6% in the Middle East, and 4% in Latin America. During the same period, sales growth rates by region were 91% in Europe, 33% in the U.S., 154% in the Middle East, and 491% in Latin America, showing significant growth in all regions, including the U.S.
A representative from The Founders noted, "It is true that we made an equity investment in YesAsia Holdings," but added, "It is difficult to disclose any further details."