1. Brief us about your business model like how did the idea come to start and how does it work (step by step procedure)?
Arata is a plant-based, chemical-free personal care brand that develops highly effective, proprietary formulations, and works with renowned manufacturing partners across the country. We distribute our products on the internet, through our direct channel, as well on marketplaces such as Amazon, Nykaa, and Big Basket, among others.
2. What are the unique key points of your company?
We’re the first and only brand in India to have received the coveted EWG Verified certification for our products. Our products are not only safe and effective, but also innovative and unique – from our Natural Organic Flaxseed Hair Gel, to our Fluoride-Free Cinnamon and Chamomile Toothpaste, we’re making the entire personal care experience non-toxic, yet exciting and indulgent.
3. How are you different from the existing competitors?
We’re differentiated on four counts:
– Honest and Transparent: We disclose every ingredient on our labels, so our customers can make informed decisions about what they’re using, while we also create awareness around brand transparency.
– Safe and Effective – We make products that really work! Often people find a trade-off between natural and synthetic products, in that natural products offer a subpar performance and sensorial experience. However, we’ve innovated to ensure that despite being natural and chemical-free, our products deliver on their promise and make you feel great.
– Sustainable and Conscious – We’re good for you, good for your furry friends, and great for the environment. We don’t use synthetic ingredients, don’t test on animals, and never use animal or insect-derived ingredients. We’re also packaged in Post-Consumer Recycled Plastic, which is plastic that has already been recycled, and taken from landfills and oceans, melted, sanitized and moulded into our bottles.
– Premium Experience – Our choice of ingredients, fragrance notes, packaging, branding and communication, are all of international standards. From using potent ingredients like rosehip, primrose, sage and argan oil to incorporating natural fragrances made of spices, herbs and floral extracts, we’re providing a truly world-class experience at a fourth of what one would spend for a comparable international product.
4. What is the funding status and monetization model?
We’re venture-backed by some of the leading domestic and international Venture Capital funds and industry stalwarts (including those from Estée Lauder and Proctor & Gamble). We monetize by marketing our products on the internet.
5. What challenges are you facing in running your business?
Challenges are aplenty in any start-up, from developing the right formulation to identifying the right positioning and price-point for an SKU, raising funding or finding talent, not to mention acquiring and retaining customers – being agile and creative is required at all times.
6. How has been the people`s/TG response so far?
Phenomenal. We’ve grown over 10x in two years, and most significantly during the lockdown. We’ve catered to over 200,000 customers across the country and yet we see 50% or more come back for repeat purchases. Our recent survey showed us that more than 85% of our customers rated us 8+ on a scale of 10.
7. What are the traction details (like users & other achievements of the company)?
We’re at an ARR of approximately 10 crores and are growing month-on-month.
8. How do you look at expansion?
We’re focusing on online distribution for the coming 12 months, and could then evaluate offline distribution. We’re also in the early days of our international expansion.
9. What are your marketing plans?
Our focus remains on internet-driven marketing and all that it entails – from performance ads and videos to influencer marketing, alongside organic growth from all our social platforms.
10. What has been the biggest learning so far?
Every day is a learning for us, because of the dynamic nature of an upstart. Our biggest learning though has come from one source – the customer. By constantly engaging with and understanding pain points from our customers, we learn how to make better products, better formulas that solve more problems, and thereby win more customers and retain existing ones.
11. What is the market size and opportunity?
The TAM for Personal Care is currently a USD 20 billion opportunity which is set to grow to USD 30 billion by 2030. Within this market, the Natural / Clean Segment is the fastest growing one, and one we’re happy to be a part of.
Source: Business World
