How is ARATA doing after Shark Tank India?

Founders: Dhruv Bhasin and Dhruv Madhok
Business: Hair Product
Ask: ₹1 Crore for 1.25% Equity
Valuation/ Networth: ₹80 Crores
Funding: ₹1 Crore for 1.33% Equity + .67% Advisory Equity
Sharks: Namita Thapar & Vineeta Singh
Episode: Season 3 Episode 10

ARATA Shark Tank India Pitch:

Arata is a high-performance hair care brand that specializes in products for curly, frizzy, and short hair. Importantly, their products are free from toxins and chemicals. They have attracted 8 lakh customers and are available on their website, various e-commerce platforms, and quick commerce channels. While 20% of their sales come from their own website, the remaining 80% are generated through various marketplaces.

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ARATA Financial during Shark Tank:

In January ’19, they conducted their first round of fundraising, securing ₹3.5 Crores at a valuation of ₹11 Crores. The next round took place in November ’20, raising ₹7 Crores at an ₹18 Crores valuation. The most recent round in November ’21 saw them raise ₹17 Crores at a post-money valuation of ₹77 crores.

In FY20-21, they achieved ₹6.5 crores in sales with a loss of ₹3.2 Crores. For FY21-22, sales reached ₹14 crores with a loss of ₹7.8 Crores. In FY22-23, they achieved ₹17 crores in sales with a loss of ₹12 Crores. As of September in FY23-24, they have already surpassed ₹10 crores in sales with a loss of ₹1.4 Crores. They project closing the year with ₹25 crores in sales and a loss of ₹80 Lakhs.

Currently, they have only ₹50 lakhs in the bank and ₹4-4.5 crores inventory. They boast a 40%-45% repeat customer rate on their website.

Who are founder of ARATA?

Dhruv Bhasin and Dhruv Madhok co-launched this brand in February 2018, holding a 43% equity stake. Notably, Dhruv Madhok was also the founder of SnackIT.

ARATA Shark Tank India Negotiations & Funding:

Anupam does not see a differentiator, and he points out that Arata has only ₹50 lakhs in the bank, and the valuation they are asking for makes no sense. For these reasons, he chooses to opt out of negotiations. Deepinder explains that he cannot invest Zomato and Blinkit partners. Aman is hesitant to invest in Arata and chooses to opt out. Vineeta makes an offer in collaboration with Namita of ₹1 Crore for 2% Equity. The Arata founder counters it with an offer of 1 crore for 1.33% Equity + 0.67% Advisory Equity. The deal was finalized.