VLCC set to acquire men’s grooming brand Ustraa
- ByStartupStory | June 10, 2023
VLCC, the personal care brand, is set to acquire Ustraa, a men’s grooming brand, through a share swap and secondary buy-out. The direct-to-consumer (D2C) brand, Ustraa, will receive additional investment from VLCC to accelerate its growth. As a result of the acquisition, Ustraa’s current investors, including Info Edge, 360 One (formerly IIFL Ventures), and Wipro Consumer Care Ventures, will become stakeholders of VLCC. This strategic move will enable VLCC to enter the men’s grooming market, with Ustraa’s founders, Rahul Anand and Rajat Tuli, continuing to lead the brand and also overseeing VLCC’s D2C operations.
Ustraa, a brand under Happily Unmarried, was established in 2015 and specializes in offering a wide range of products including fragrances, hair care, face, and beard care. The brand boasts approximately 2.2 million customers on its app and derives around 67% of its sales from online channels. During the fiscal year ending March 2022, Ustraa achieved impressive growth, with a 70% increase in scale, amounting to Rs 67.87 crore in revenue. Notably, the company managed to maintain stable losses, with figures remaining at Rs 27.91 crore for the same period.
In the fiscal year 2022, Beardo and The Man Company, Ustraa’s competitors, reported operating revenues of Rs 95 crore and Rs 73.61 crore, respectively. According to analysis by Fintrackr, The Man Company experienced a significant increase in losses, reaching Rs 30.88 crore, while Beardo achieved profitability, generating profits of Rs 75 lakh in the same period.
Ustraa has secured more than $10 million in funding from prominent investors, including Info Edge, Wipro, and IIFL. In its latest funding round, the brand raised Rs 16.8 crore (approximately $2.1 million) from its existing investors, a development exclusively reported by Entrackr. Notably, earlier this year, global investment firm Carlyle acquired a controlling stake in VLCC. Carlyle’s global private equity funds have previously made investments in renowned brands like Beautycounter, Every Man Jack, and Delhivery, among others.
Follow Startup Story
Related Posts
