Arata, a leading hair care brand in India, has successfully raised $4 million in a new funding round led by Unilever Ventures, the venture capital arm of Unilever. This funding round also saw participation from L’Oréal’s corporate venture capital fund, BOLD, and existing investor Skywalker Family Office.
Purpose of the Funding
Arata plans to utilize the newly acquired funds to:
- Invest in research and development for innovative hair care solutions.
- Expand its consumer research efforts to better understand market needs.
- Strengthen its distribution channels across various platforms, including its own website, quick-commerce platforms, and major e-commerce marketplaces.
Co-founders Dhruv Bhasin and Dhruv Madhok expressed their enthusiasm for the funding, stating, “This funding will allow us to continue our mission of building India’s most beloved hair beauty brand.”
Strategic Insights
Pawan Chaturvedi, Partner & Head-Asia at Unilever Ventures, highlighted the potential for growth within Arata, stating, “With a strong innovation pipeline and a solid foundation, Arata is poised for significant growth in the coming years, and we are thrilled to be a part of this journey.” This investment underscores the increasing interest from major consumer goods companies in the Indian beauty and personal care market.
Market Context
Founded in 2018, Arata has emerged as a key player in India’s personal care segment, specializing in solutions tailored for various hair types. The brand addresses diverse needs including:
- Hair growth
- Dandruff treatment
- Styling
- Maintenance for straight, wavy, and curly hair
Arata’s products are crafted with advanced ingredients specifically designed for Indian hair types 1, 2, and 3.
Competitive Landscape
In a rapidly growing market that includes established competitors like WOW Skin Science, Pilgrim, and Mamaearth, Arata’s focus on innovation and consumer-centric solutions positions it well for success. The direct-to-consumer (D2C) model allows Arata to engage directly with its customer base while maintaining control over branding and customer experience.
Growth Metrics
Arata currently serves over 1.5 million customers annually and has achieved an impressive annual revenue run rate (ARR) of ₹72 crore, marking a threefold growth over the past year. Approximately 30% of its total sales come from its D2C website, while the remaining 70% are driven by other channels such as:
- Quick-commerce platforms like Zepto, Blinkit, and Swiggy Instamart
- E-commerce marketplaces including Amazon, Nykaa, and Flipkart
Conclusion
The $4 million funding secured by Arata represents a significant milestone in its journey to become a leading player in India’s hair care industry. With strong backing from prominent investors and a clear strategy focused on innovation and consumer engagement, Arata is well-positioned to capitalize on the growing demand for effective hair care solutions. As it continues to expand its product offerings and distribution channels, Arata aims to solidify its status as a go-to brand for Indian consumers seeking high-quality hair care products.
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