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Hat-trick for vegan beauty brand as Development Bank of Wales invests for the third time in Mallows

Investors in this round: Development Bank of Wales

Llantrisant-based Mallows Beauty is launching in 550 Superdrug stores throughout the UK and preparing to expand in to the US market with a six figure equity investment from the Development Bank of Wales.

This is the third investment by the Development Bank in Mallows since 2021, taking the total equity and debt funding package to over £1 million. The fast growth business now employs 25 and is achieving run-rate revenue of over £5 million in 2023/24 with a three-year compound annual growth rate (CAGR) of over 100%. Stockists include Oliver Bonas, Beauty Bay and Superdrug.

The Mallows product range includes shave butter, body scrubs, hair care, skin care and razors. Superdrug will now stock the shave butter and razors with more product lines expected to be added shortly.

Mallows Beauty was founded by Laura Mallows in 2020. She said: “With a focus on self-love, body positivity and female empowerment, our ethical products are made for real skin, and real bodies. We make people feel good and as we enter the next chapter of our growth, we’re feeling really positive about the power of our brand as a beacon of change in the beauty and skincare industry.

“The support from the Development Bank over the last three years has been fantastic. They’ve helped us to make the transition from start-up to scale-up, providing much-needed development capital and guidance that has made a real difference. We’ve now got the people, the processes and the funding that we need to increase production and accelerate our growth in the global skincare market starting with our products being sold in all Superdrug stores throughout the UK.”

Kelsie Taylor and Sam Macalister-Smith are the Portfolio Executives with the Development Bank that are supporting Mallows. Kelsie said: “We’ve got a great working relationship with Laura and the team at Mallows and it’s been a pleasure to watch the business mature and grow over the last three years. They’ve demonstrated excellent profitable revenue growth and are seizing every opportunity to capitalise on the growing global market for natural skincare and beauty products.

“The contract with Superdrug is a major vote of confidence in the Mallows brand as the team continues to develop innovative and ethical products that promote well-being and positivity.”

The equity investment for Mallows Beauty came from the £500 million Wales Flexible Investment Fund. Financed by the Welsh Government and Development Bank of Wales, loans, mezzanine finance, and equity investments are available for businesses based in Wales from £25,000 to £10 million.