Welsh vegan beauty brand Mallows Beauty has secured a new finance deal to enable it to fund product development and export growth. The Cardiff-based company will receive a six-figure funding package, including a mix of debt and equity, from the Development Bank of Wales - the second investment by the Bank since 2021.
Mallows Beauty has gained a cult following since going viral on TikTok with its brightly packaged pink products such as the ‘Unicorn Shave Butter’ and ‘Pineapple Enzyme Peel Mask’, driving demand for its goods overseas. It is currently stocked in River Island and Oliver Bonas and has recently launched in 177 Urban Outfitters stores in the US as part of its global export growth strategy.
The brand is similarly eyeing up expansion in Australia and is set to launch its products with leading online retailer, Glam Raider.
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Founder Laura Mallows said: “I founded Mallows Beauty in 2020 because, after battling with self-image, acne, and anxiety my whole life, it became clear that the industry needed a brand based on real babes, real skin and real bodies. The industry has historically contributed to damaging our body image, which is why I wanted a different approach. For us, promoting self-love and body positivity is not just a marketing tactic, it's at the core of everything we do - from our product designs to our social media posts.
"We make sure that our messaging is inclusive and reflective of diverse body types. Every campaign and product is created with the intention of promoting body positivity and self-care. We're on a mission to change the world one body scrub at a time. This investment will help us to reach our full potential - it's also going to mean that we no longer continuously run out of stock. We are so grateful for our fantastic relationship with the Development Bank. They’ve been a long-standing supporter of the brand so they were our first port of call when planning our next growth chapter."
Portfolio executives Sam Macalister-Smith and Kelly Jones of the Development Bank of Wales are supporting the business. Mr Macalister-Smith said: “Mallows Beauty is a fun, innovative and down to earth ‘self-love’ brand focused on self-care and mental wellbeing, targeting Gen Z and young millennials. From a humble start, the team has demonstrated excellent revenue growth and now employs 14 with high ambitions to rapidly expand in the United States and Australia. Our funding is a really exciting opportunity to help scale the business in a fast growing global market and fits well with our commitment to incorporating ESG factors into investment, analysis and decision making.”
John Saunders advised Mallows on corporate finance, while the Development Bank was advised by Geldards’ corporate team. Associate Stewart Knights said: “We were pleased to advise the Development Bank of Wales on this significant investment in Mallows Beauty, a fast-growing and successful business and just another example of the Development Banks’ support of business expansion in Wales.”
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