Founders & their story

• Dhruv Bhasin
• Dhruv Madhuk

Arata, a high-performing hair care brand, has redefined the industry by specializing in unbundled hair care solutions tailored for specific needs such as curly hair, short hair, and frizzy hair. Operating exclusively online, the brand has successfully garnered a customer base exceeding 8 lakh, offering an extensive range of over 50,000 products. Renowned Bollywood actress Tapsee Pannu serves as a brand ambassador, adding a touch of celebrity endorsement to the brand. Launched in February 2018, Arata draws inspiration from its Japanese namesake, signifying freshness and innovation. The brand is committed to providing organic and natural hair care products, with a notable offering being their alcohol-free and toxin-free hair gel. Arata’s focus on catering to diverse hair types has contributed to its success in meeting the unique needs of customers.

Arata’s financial journey reflects its rapid growth and investor confidence. The brand secured funding amounts of 3.5 crores in January 2019, 7 crores in November 2020, and 17 crores in November 2021, valuing the company at 77 crores post money. The founders retain a significant equity stake of 43%, showcasing their commitment to the brand’s success.

Further enhancing Arata’s trajectory are two Letters of Intent from distinct investor groups, signalling continued interest and support in the brand’s vision. As Arata continues to revolutionize the hair care industry, its focus on organic, natural, and specialized solutions positions it as a trailblazer in the online beauty and wellness space.

About the company

Arata, a personal care brand, is dedicated to enhancing the beauty of your hair. Each strand carries a unique story, with every curl and wave echoing a cherished memory. Arata specializes in beauty and care for Indian hair, collaborating with dermatologists and skincare experts to create scientifically advanced and sustainable products. Their offerings are dermatologically tested, cruelty-free, plant-powered, plastic positive, and non-toxic. Driven by a vision for honesty and cleanliness in personal care, Arata emerged as a response to the prevalence of harmful chemicals in such products. Providing a safe and reliable alternative, Arata is committed to transparency. Every ingredient used in their products is disclosed, empowering customers to make informed choices. Rigorous independent testing ensures the safety, efficacy, and quality of each product.

Arata goes beyond borders to source ingredients from organic farms in India and around the world, prioritizing sustainability and certification. By embracing Arata, customers experience plant-powered hair care designed to nurture their hair with integrity. The brand’s commitment to transparency, safety, and sustainability highlights its dedication to offering a reliable and clean beauty solution.

Revenue

Super Shampoo, priced at 899 Rs, maintains a competitive average selling price of 600 Rs. With a distribution split of 20% on their website and 80% on online marketplaces, the brand enjoys a robust 40%-45% repeat rate, signifying customer satisfaction. Financially, the brand has shown significant growth: 6.5 crores in FY 20-21, 14 crores in FY 21-22, and 17 crores in FY 22-23 (with a loss of 12 crores). Despite this setback, the growth rate stands at an impressive 21.4%. Projections for FY 23-24 target sales of 25 crores. As of September 2023, the Ebitda is 4-5%, reflecting financial stability. With 50 lakhs in cash reserves and an inventory valued at 4-4.5 crores, Arata is trying to maintain a healthy financial balance.

Founders’ Ask 

1 crore for 1.25% equity at the valuation of Rs. 80 crores.

Offers:

Namita and Vineeta: 1 crore for 2% equity at the valuation of Rs. 50 crores.

Founder’s Counteroffer:

1 crore for 1.33% equity at the valuation of Rs. 75 crores and 0.67% advisory equity.

Final Deal

Namita and Vineeta: 1 crore for 1.33% equity at the valuation of Rs. 75 crores and 0.67% advisory equity.