D2C Men’s Grooming Startup Ustraa Raises Fresh Funding
Ustraa, a New Delhi-based men’s grooming startup, has raised Rs 16.8 Cr (approximately $2.1 Mn) in a strategic funding round led by Info Edge’s subsidiary Startup Investments.
First reported by Entrackr, IIFL Seed Ventures and Wipro Enterprises also participated in the funding round.
Info Edge has invested Rs 7.5 Cr, while IIFL Seed Ventures Fund-II and Wipro Enterprises have invested Rs 6.3 Cr and Rs 3 Cr, respectively, as per regulatory filings.
Happily Unmarried, the parent company of Ustraa, passed a special resolution to issue 1,960 Series I preference shares at an issue price of Rs 85,711.84 per share.
USTRAA | Grooming For Men
Founded by Rahul Anand and Rajat Tuli, Ustraa is a D2C men’s grooming startup offering shampoo, face wash, hair oil, beard oil, and other products. As per the startup, its products are formulated in its in-house lab and are completely free of SLS, PARABENS and other harmful chemicals.
The men’s grooming startup largely sells its products via its website, ecommerce platforms such as Amazon and Flipkart, and third-party retail outlets.
As of July 2022, Ustraa had a presence across 9,000 outlets in the general trade and the standalone modern trade verticals.
Recently, Rajat Tuli stated that the startup receives a bulk of its sales, around 70-72%, from the online channel, and he expects the digital mix to reduce to 65% in the next couple of years.
With 120 distributors across India, the men’s grooming startup has onboarded around 500-600 beauty advisors to sell products. Targeted largely at the young population, the men’s grooming startup claims to have a gross margin in excess of 70% with a net annualised run rate (ARR) of Rs 1.2 Bn. Ustraa targets to achieve an ARR of Rs 1.5 Bn-Rs 1.7 Bn by the end of the current year.
In February last year, Ustraa had last raised Rs 20 Cr as part of its Series H funding round From IIFL Seed Ventures Fund.