A profitable Indonesian beauty brand gives more than just good face

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Hello reader,

One of my favorite ways to kill time at the mall is to wander into a place that sells makeup.

Whether it’s a dedicated cosmetics store like Sephora or a drugstore with an extensive makeup selection like Watsons, I can while away large amounts of time just by looking at everything on display. It’s always fun for me to see new brands on the shelves and to learn more about what makes them unique.

One brand I’ve yet to encounter on my makeup browsing adventures is Esqa.

The Indonesia-based company, which was founded in 2015, offers vegan beauty products. It’s currently only available in its home market and Vietnam, which is why I haven’t seen it in Singapore. But it’s certainly done very well for itself, so who knows? I might see it soon at the local mall.

Today we look at:

• Esqa’s success as a beauty brand
• A supply chain enabler that’s raised some funds
• Other newsy highlights such as MoneyLion’s exit from an Aeon-led digibank consortium in Malaysia and the closure of Cars24’s operations in Indonesia and Saudi Arabia

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In the eye of the moneymaker

Image credit: Timmy Loen

Esqa’s a great success story. The beauty startup started out with just a US$40,000 investment from its two co-founders, sold thousands of products within the first month of its launch, and has been profitable since 2017. Here’s a look at its journey.

• Meeting a need: Esqa was developed to address a gap in Indonesia for modern and vegan beauty products. Its brand positioning focuses on quality products that are on par with luxury brands but at affordable price points. Esqa currently offers 120 items, including face, eye, and lip makeup as well as a skincare line.
• Keeping costs down: Marketing costs often take up a large chunk of a company’s spend, but the company has kept this down to about 20% of its total expenses. It leverages social media, positive reviews on ecommerce sites, and tools such as livestreaming to help promote its products.
• Next steps: In November, Esqa raised a US$6 million series A round led by Unilever Ventures. The funds will be used to expand its offline presence, conduct product research, and strengthen its skincare category.

Read more: Indonesian beauty firm turns $40k investment into profitable business in two years

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