In a significant development for Tamil Nadu’s direct-to-consumer (D2C) ecosystem, hair care brand Arata has successfully raised ₹33 crore ($4 million) in a Series A funding round led by Unilever Ventures, the venture capital arm of global consumer goods giant Unilever. The investment, which values the company at ₹195 crore post-money, also saw participation from L’Oréal’s venture fund Bold and existing investor Skywalker Family Office.
The Chennai-based startup, founded in 2018 by Dhruv Madhok and Dhruv Bhasin, has established itself as a pioneer in developing specialized hair care solutions tailored for Indian hair types. The company’s innovative approach to hair care has helped it build a substantial customer base of over 1.5 million annual users.
“We identified a significant gap in the market for innovative Indian brands creating solutions specifically for Indian hair types,” said Dhruv Madhok, co-founder of Arata. “Legacy brands typically followed a one-size-fits-all approach, which didn’t address the unique needs of our consumers. We’ve built our brand on the foundation of scientific research, working closely with dermatologists and trichologists to understand and meet these specific requirements.”
The fresh capital injection comes at a time of remarkable growth for Arata, which has seen its annual revenue run rate surge to ₹72 crore this year, a dramatic increase from ₹23 crore in the previous year. The company plans to utilize the new funds to strengthen its research and development initiatives in hair and scalp solutions, enhance its content and marketing strategies, and expand its talent pool.
Pawan Chaturvedi, partner and head-Asia at Unilever Ventures, expressed confidence in the investment, stating, “We are delighted to back Arata, a result-focused hair care brand that has experienced remarkable growth over the past year. The brand’s achievement, driven by innovative products and effective marketing strategies, has been particularly impressive.”
Arata’s success story highlights the growing prominence of Tamil Nadu’s startup ecosystem in the D2C space. The company has developed a robust omnichannel presence, with 30% of its sales coming from its D2C website and the remaining 70% through various platforms including Nykaa, Flipkart, Amazon, and quick commerce platforms such as Zepto, Blinkit, and Swiggy Instamart.
The investment marks a significant milestone for Tamil Nadu’s consumer brand landscape, demonstrating the state’s potential to nurture innovative D2C startups that can attract global investors. This funding round follows a broader trend of increased venture capital interest in Indian D2C brands, as evidenced by Unilever Ventures’ recent ₹16.5 crore ($2 million) investment in skincare brand ClayCo Cosmetics and previous investments in companies like Plum and Minimalist.
For Tamil Nadu’s startup ecosystem, Arata’s success represents a promising shift towards building science-backed consumer brands that can compete on a national scale. The company’s ability to attract investment from global beauty industry leaders like Unilever and L’Oréal not only validates its business model but also positions Chennai as an emerging hub for innovative consumer brands.
