China headquartered private equity firm SKS Capital has announced its strategic investment in Grace, South Korea’s largest aggregator of international health and beauty brands.

SKS Capital said in a statement on Monday that the firm is the lead investor in Grace Series B funding with $5 million.

According to the statement, the capital will be used to expand Grace’s business operations and pursue growth opportunities in the region, focusing on scaling operations, hiring personnel, and developing new service offerings.

“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.

Grace is the largest supplier of Olive Young, Korea’s largest health and beauty retailer, and supplies to online channels and over 50,000+ offline point of sales in Korea.

The firm has been growing its business by partnering and exporting Korean brands to over 60 countries via business to business (B2B) and direct to consumer (D2C) channels.

According to the statement, Korean beauty brands are becoming increasingly popular among Asian consumers, as many are drawn to the innovation and quality.

SKS Capital said it will support Grace’s expansion by bridging connections in Southeast Asia, where SKS has a strong presence in the beauty ecosystem, including supply chain, logistics, distributors, licensees, e-commerce, retailers, and connections with celebrities.

“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.

Cited Grand View Research, SKS Capital said the Asia-Pacific beauty market is expected to grow at a compound annual growth rate (CAGR) of 8.2 percent from 2020 to 2027.

This deal is part the continuous strategic investment in the beauty and personal care sector by SKS Capital, with headquarters in Shanghai and Taipei.

“Our main focus is to source potential investments in the APAC region, and to introduce the company to new markets to drive business advancement,” added Chen.

SKS Capital, founded in 2017, is one of the first modern venture capital and private equity firms in Asia specializing in the consumer, covering: beauty & health D2C brands, food and beverage (F&B), distribution channels, e-commerce, beauty supply chain, and consumer enabling technologies.

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