Chinese contact lens brand raises $65m

The fresh capital will primarily go towards R&D. Dearer currently has seven registration certificates for class-three medical devices -  the category with the highest complexity - including one for transparent lenses and six for color contact lenses. They cover daily, monthly, semi-annual, and annual use.

The company claims to launch about 1,000 new designs every month, of which 30% make it through product development. Dearer distributes through all major online and offline retail channels, while its own-brand store, Realkoko, is expanding rapidly.

“The cosmetic contact lens industry is part of the general consumption upgrade and beauty economy trend. The cosmetic contact lens market is growing rapidly and demand will remain strong in the long term. In addition to having consumer product attributes, [Dearer] produces class-three medical devices, so the barrier to entry is high," says Wei Peng, a principal at CPE, in a statement.

Investors are flocking to China's beauty economy as domestic brands emerge that are attuned to the demands of younger consumers and leverage internet-based marketing and distribution channels. Cosmetic brand Perfect Diary, which listed in the US last year, is arguably the most high-profile example.

Moreover, contact lenses represent a discrete investment category in North Asia’s competitive beauty and cosmetics space. Last year, Japan's Integral Corporation acquired T-Garden, which pioneered fashion model-led contact lens marketing in the country. Meanwhile, in Korea, VIG Partners bought Star Vision in 2018.

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• Topics
• Greater China
• Consumer
• Early-stage
• China
• CPE Capital
• Legend Capital