D2C Startup Arata’s Sales Jump 50% To INR 21 Cr In FY24

SUMMARY

The startup has reported an operating revenue of INR 21 Cr, almost 50% higher than INR 14 Cr in FY23

In FY24, the startup reported a loss of INR 4.3 Cr, 54% lower than INR 9.4 Cr it had reported a year ago

In FY24, the startup’s total expenditure stood at INR 26.5 Cr in FY24, almost similar to INR 26.6 Cr it spent last year

Delhi NCR-based hair care brand Arata’s sales jumped 1.5X during the financial year ended March 31, 2024. The D2C startup’s revenue zoomed 50% to INR 21 Cr in FY24 from INR 14 Cr in the previous fiscal year, indicating strong demand.

The startup, which featured in TV show Shark Tank India, primarily earns revenue by selling products on its website and marketplaces, including quick commerce platforms like Swiggy Instamart and Blinkit.

Founded in 2018 by Dhruv Madhok and Dhruv Bhasin, Arata has over 26 SKUs across four categories. The startup claims all its products are developed after extensive R&D and undergo rigorous testing at a French lab in India before hitting the market. Its PETA-certified cruelty free vegan products are certified by Safe Cosmetics Australia and EWG.

Not only did the startup see a rise in its top line, it also managed to narrow its net loss due to improvement in margin. Arata’s loss fell 54% to INR 4.3 Cr during the year under review from INR 9.4 Cr in FY23.

Where Did Arata Spend?

Despite the rise in sales, the startup managed to keep its expenses almost stagnant in FY24. Total expenditure stood at INR 26.5 Cr in FY24 as against INR 26.6 Cr in the previous year.

Procurement Cost: The startup spent INR 6.4 Cr to procure raw materials, a decline of almost 3% from INR 6.6 Cr in the previous year.

Employee Benefit Expenses: Employee costs, which include salaries, gratuity, PF, among others, grew 6% to INR 3.5 Cr from INR 3.3 Cr in FY23.

Advertising Expenditure: Arata reduced its advertising expenditure by 39% to INR 6.7 Cr in FY24 from INR 11 Cr in FY23.

The startup primarily sells shampoo, conditioner, hair gel and serum. Besides, it also sells bodywash products.

It has raised a total funding of over $1 Mn till date from the likes of DSG Consumer, Nikhil Vohra, among others.

Arata competes with WOW Skin Science, Pilgrim, Mamaearth, among others, in the personal care segment.

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