Arata Zero raises Rs 3.5 crore funding

Body and beauty care products that are based on natural and vegan ingredients are fast gaining popularity among Indian users. The market for such products is expanding, and this has prompted venture capital funding companies to increasingly invest in manufacturers which specialize in products made with nature-derived ingredients. Personal care product brand, Arata Zero Chemicals has managed to raise Rs 3.5 crore funding to be utilised in product development, team-building, sales and marketing initiatives

Barely a year after it was founded, personal care product brand, Arata Zero Chemicals, has announced that it has raised seed funding worth Rs 3.5 crore in a round led by reputed venture capital funding company DSG Consumer Partners; Utsav Somani of venture fund, AngelList India; and Dr. Rajan Raghavachari, ex-Director, personal care research and development, at Unilever. To facilitate the transaction, Clove Legal acted as the legal adviser of DSG Consumer Partners.

The New Delhi-based company, which was founded in February 2018, intends to use the funds for the development and launch of new products, marketing activities, strengthening its team, and for making further investments to spruce up its online and retail sales, according to a company release.

Focus on vegan and chemical-free

Arata Zero Chemicals manufacturs natural, vegan and chemical-free unisex skin as well as hair care products. The company uses only safe and non-toxic, nature-derived ingredients and is a Peta-Certified Vegan and Cruelty-Free manufacturer, according to the press release

Justifying the seed funding for the benefit of Arata Zero Chemicals, DSG Consumer Partners’ Managing Director Deepak Shahdadpuri, says that there is a vast opportunity for an honest, clean label everyday personal care brand that consumers can trust.

Shahdadpuri is quoted in the press release: “Consumers across the globe are becoming more conscious about the safety and efficacy of personal care products they use on a regular basis. At the same time, younger consumers are showing a strong preference for natural and plant-based ingredients.”

Arata Zero Chemicals was founded by Dhruv Madhok, a former strategy consultant with a reach experience in the US and the United Arab Emirates (UAE) markets; and Dhruv Bhasin, an ex-finance executive who was active in the United Kingdom (UK) and India.

Safe and clean ingredients

Madhok believes that there was not a single dependable brand in India that made body care products of the highest quality of safe and clean ingredients. He says in a company press release, “We were becoming increasingly aware of the harsh effects of synthetic chemicals in the products we were consuming daily. Stating that Arata Zero Chemicals was founded to fill this gap, Madhok adds: “We had the vision of an honest personal care company that would offer trustworthy and credible products. Based on that vision, we, along with a very talented group of people, brought Arata to life.”

The company website claims that Arata Zero Chemicals is India’s first and only 100% natural, zero chemical unisex personal care brand that provides all-natural personal care products without compromising on your aesthetic experience. It ensures that its all-natural products look, smell and feel fantastic on the skin and hair without the use of a single synthetic ingredient. It made this possible through years of rigorous product development and collaboration with some of India’s finest cosmetologists and productions specialists. The quality and integrity of its ingredients and products are central to what the company is and also, is a direct reflection of the brand, the website stated.

Each Arata product is safe and effective for everyday use and is meant to give a fresh new approach to your skin and hair-care routine, according to the website. The company’s body care products portfolio includes face wash, face care, hair cream, hair gel, hair styling gel, lip balm, shampoo and shower powder, among others.

The products of the company ensure that your body never comes into contact with a single chemical. These are 100% nature derived, plant-based products for women and men, without compromising on performance, the website mentions.

Active investors

In recent times, several companies in the beauty and body care sectors have attracted investor funding. Lighthouse Advisors, a mid-market private equity company, had invested in beauty product e-tailer Nykaa, in September 2018. In June, Mumbai-based Manash Lifestyle Pvt. Ltd, which runs, a beauty products and services marketplace, had received about Rs 17.50 crore from a group of investors. In June itself, FMCG beauty product maker Emami had announced that it had picked up a 7.54% stake amounting to Rs 3.83 crore, in Loli Beauty Inc., US-based beauty care products company.

Consumers today are knowledgeable about the multiple kinds of cosmetic and skin care products that are available in the market. And they are increasingly becoming careful about the products they use and the ingredients that go into making a particular product. Many consumers nowadays seek greater transparency, care and personal safety while buying a cosmetic product, as compared to a few years back, when people neither knew nor cared about the ingredients of the products, stated a news report in the Indian Express.

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