Total amount raised
$40.5 Million
Latest funding date
12/1/2024
Location
Arata has successfully raised funding over four rounds, with the latest being a Series A round led by Unilever Ventures. The company is backed by ten investors, including Skywalker and Business Opportunities for L'Oréal Development.
Arata's journey in the beauty and cosmetics industry is marked by its innovative products and strategic partnerships. Keep reading to explore the intricacies of Arata's fundraising journey and the investors backing this promising platform.
What Is Arata?
Arata, founded in 2016, is a New Delhi-based company specializing in hair care and beauty products. The company started with the creation of India's first alcohol-free hair gel and has since expanded its product range to include solutions for hair fall, dandruff, frizz, and more.
Operating with a small team of 11-50 employees, Arata emphasizes science-backed formulas developed in collaboration with dermatologists and trichologists. The company has raised funding through multiple rounds, with the latest being a Series A round, and continues to innovate in the beauty and cosmetics industry.
How Much Funding Has Arata Raised?
- Series A
- Amount Raised: USD 4,000,000
- Date: December 2024
- Lead Investors: Unilever Ventures
- Valuation at Round: Rs 195 crore
- Motivation Behind the Round: Enhance R&D efforts in hair and scalp solutions, strengthen content and marketing efforts, and focus on talent acquisition.
- Seed
- Amount Raised: USD 35,000,000
- Date: May 2022
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: Expand product range and scale operations.
- Seed
- Amount Raised: USD 1,000,000
- Date: November 2020
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: Develop new product lines and increase market reach.
- Seed
- Amount Raised: INR 35,000,000
- Date: January 2019
- Lead Investors: DSG Consumer Partners
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: Initial product development and market entry.
Total Amount Raised: USD 40,000,000
Current Valuation: Rs 195 crore
Key Investors
- Unilever Ventures
- Details: Unilever Ventures is the venture capital and private equity arm of Unilever. They focus on investing in innovative companies in the consumer and technology sectors.
- Investment Focus Areas: Consumer goods, Technology, Sustainability
- Notable Investments: Gousto, Instacart, True Botanicals
- DSG Consumer Partners
- Details: DSG Consumer Partners is an investment company that focuses on early-stage consumer businesses in India and Southeast Asia. They aim to support companies with strong growth potential.
- Investment Focus Areas: Consumer goods, Food and beverage, Retail
- Notable Investments: Veeba, Epigamia, Raw Pressery
- L’Oréal’s corporate venture capital fund, Bold
- Details: Bold is the corporate venture capital fund of L’Oréal, representing the French beauty giant. They participate in funding rounds to support innovative beauty and cosmetic companies.
- Investment Focus Areas: Beauty, Cosmetics, Skincare
- Notable Investments: Not publicly disclosed
- Skywalker Family Office
- Details: Skywalker Family Office is an existing investor in Arata. They focus on providing financial support to promising startups and growth-stage companies.
- Investment Focus Areas: Not publicly disclosed
- Notable Investments: Not publicly disclosed
What's Next for Arata?
Arata's future looks promising with significant opportunities in enhancing R&D for hair and scalp solutions, strengthening marketing efforts, and acquiring top talent. The recent Series A funding of $4 million, led by Unilever Ventures, positions the company well to capitalize on these opportunities. With a valuation of Rs 195 crore and an annual revenue run rate of Rs 72 crore, Arata is poised for substantial growth.
Future fundraising seems likely given the company's impressive growth trajectory and the increasing demand for specialized, science-led hair care products. Arata's expansion into multiple sales channels, including direct-to-consumer platforms and major e-commerce sites, further bolsters its market presence. However, the company will need to navigate challenges such as competition from established brands and maintaining innovation in a rapidly evolving market.
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