VLCC, a renowned personal care brand, is set to acquire Ustraa, a popular men’s grooming brand. This strategic move involves a share swap and secondary buy-out, with VLCC providing additional investment to accelerate Ustraa’s growth. The acquisition will allow VLCC to venture into the men’s grooming market while making Ustraa’s existing investors stakeholders in VLCC.
Ustraa’s Continued Presence and Leadership
Rahul Anand and Rajat Tuli, the founders of Ustraa, will continue to work with the brand and will also head VLCC’s direct-to-consumer (D2C) operations. Ustraa, owned by Happily Unmarried and established in 2015, offers a wide range of products including fragrances, hair care, face care, and beard care items. The brand boasts approximately 2.2 million customers on its app, with 67% of sales generated through online channels.
Growth and Financial Performance
During the fiscal year ending March 2022, Ustraa experienced a remarkable 70% growth, reaching Rs 67.87 crore in revenue, while maintaining stable losses at Rs 27.91 crore. In comparison, competitors Beardo and The Man Company reported operating revenues of Rs 95 crore and Rs 73.61 crore, respectively, in FY22. The Man Company’s losses surged to Rs 30.88 crore, whereas Beardo achieved profitability with Rs 75 lakh in profits during the same fiscal year.
Investment and Funding
Ustraa has secured over $10 million in funding to date from investors including Info Edge, Wipro, and IIFL. In its latest funding round, the brand raised Rs 16.8 crore or $2.1 million from existing investors. Carlyle, a global investment firm, also acquired a majority stake in VLCC earlier this year. Carlyle’s track record includes investments in renowned brands such as Beautycounter, Every Man Jack, and Delhivery.
VLCC’s acquisition of Ustraa marks a significant move to strengthen its position in the men’s grooming industry. The partnership will leverage Ustraa’s expertise and VLCC’s resources to drive growth and expand market presence. With the combined efforts of these brands, customers can expect innovative and high-quality products in the men’s personal care segment.
