Arata: Hair care brand Arata raises $4 million in series A funding led by Unilever Ventures

Hair care brand Arata has raised $4 million in a series A funding round led by Unilever Ventures, the venture and growth capital arm of Unilever.The funding round also saw participation from French beauty giant L’Oréal’s corporate venture capital fund, Bold, alongside existing investor Skywalker Family Office.

Following this investment, the company’s post-money valuation stands at Rs 195 crore.

Arata plans to utilise the new funds to enhance its research and development initiatives in hair and scalp solutions, strengthen its content and marketing efforts, and focus on talent acquisition, cofounder Dhruv Madhok told ET.

Founded in 2018 by Madhok and Dhruv Bhasin, Arata specialises in solutions for hair growth, care, dandruff treatment, styling, and maintenance for straight, wavy, and curly hair types. Its key products include shampoos and hair care serums. The brand currently serves over 1.5 million customers annually.

“We hadn’t seen any Indian innovative brand come up in the hair care space, making solutions specifically for Indian hair types. Also, what we had seen is that a lot of legacy brands would have a very one-size-fits-all approach… So, we decided to build a hair care brand that is thoughtful, science-led, specialised, in consultation with dermatologists, trichologists, and understanding from consumers, what their needs are,” said Madhok.

Arata currently has an annual revenue run rate of Rs 72 crore this year, a significant jump from Rs 23 crore last year, he said.The company’s products are available through its direct-to-consumer (D2C) website, marketplaces like Nykaa, ecommerce platforms such as Flipkart and Amazon, and quick commerce platforms including Zepto, Blinkit, and Swiggy Instamart. Approximately 30% of its total sales come from its D2C website, while the remaining 70% are driven by other channels.

“We are delighted to back Arata, a result-focused hair care brand that has experienced remarkable growth over the past year. We are impressed by the brand’s achievement during this period, driven by a combination of innovative products and effective marketing strategies,” said Pawan Chaturvedi, partner and head-Asia at Unilever Ventures.

In a similar development, skincare brand ClayCo Cosmetics raised $2 million in October in a funding round led by Unilever Ventures. It has also invested in companies like Plum, Minimalist, and Curefit, among others.