Ustraa is a New Delhi-based men’s grooming company. It has raised INR 16.8 Crore (about $2.1 Million) in a strategic round of fundraising. The round was organized and managed by Startup Investments, which is a division within Info Edge. The round was also attended by Wipro Enterprises, IIFL Seed Ventures, and others.
Info Edge has invested INR 7.5 Cr, while IIFL Seed Ventures Fund II and Wipro Enterprises have contributed INR 6.3 Cr et INR 3 Cr respectively.
Happily Unmarried (the parent company of Ustraa) adopted a special resolution authorizing the issuance 1,960 Series I preference share shares at an INR 85,711.84/share price. Entrackr first reported the news. Ustraa was awarded INR 20 crore from IIFL Seed Ventures Fund in February last year as part of its Series-H fundraising round.
Ustraa, a D2C men’s grooming company that Rahul Anand & Rajat Tuli established in 2003, is called Ustraa. The product range includes shampoo, beard oil and face wash. It sells its products through its website, Flipkart and Amazon, as well as independent retail shops. Crunchbase reports that $10.8 million has been invested in the business so far. Ustraa had a revenue of INR 38.73 Cr in FY 2022-2021 and a loss (FY 21) of INR 22.86 Cro.
It competes in a market where some of the most prominent names in consumer goods, conglomerates and finance are supporting its competitors. It competes with Beardo, owned and supported by Emami and Bombay Shaving Company. Reckitt Benckiser is also backing it.
Ustraa was present in more than 9,000 locations in July. This includes both the general trade and independent contemporary trade verticals. Tuli mentioned that Ustraa receives 70% to 72% of its revenue through the internet channel. He also stated that he expects that digital sales will drop to 65% in the coming years.
Ustraa has 120 distributors across India and has employed 500-600 beauty experts to help them sell their products. Ustraa targets young people and claims a gross margin exceeding 70%. It also boasts an annualized run rate (ARR), of INR 1.2 million. The company expects to achieve an ARR between INR 1.5 billion – INR 1.7 million by the end of this year.