D2C ayurvedic beauty and personal care brand The Ayurveda Co (T.A.C) has raised INR 100 Cr in its Series A funding round, led by consumer-centric venture fund Sixth Sense Ventures.
The round also saw participation from actress Kajal Agarwal, a few startup founders, and venture debt funds. T.A.C did not disclose the breakup of equity and debt funding in the round but said that a majority of the funding was raised in equity.
The announcement comes four months after T.A.C said it had roped in actress Aggarwal as an investor in its Series A funding round.
The D2C brand aims to use the fresh funds to expand its offline presence, improve product manufacturing, enhance in-house R&D, and accelerate digital awareness around ayurveda and TAC.
Founded in 2021 by Singh and Param Bhargava, T.A.C manufactures ayurvedic products across categories such as skincare, haircare, natural makeup, and more, as well as wellness products like immune boosters and other supplements.
The brand has established its physical presence through its own retail stores and by partnering with other retail stores like Health & Glow. Currently, T.A.C has physical touchpoints across more than 18 cities and 15 states, including Punjab, Uttar Pradesh, Delhi NCR, and Rajasthan.
T.A.C is now aiming to increase its presence in Tier II, III cities in states like Gujarat, West Bengal, Madhya Pradesh, among others.
Besides its own website, T.A.C also sells its products online through ecommerce marketplaces such as Amazon, Nykaa, Purplle, and Flipkart.
Singh said that T.A.C is building its in-house R&D labs and is looking to further strengthen product expertise.
“This Series A funding will enable the company to further its mission of bringing ayurvedic wellness to a wider audience, especially millennials and Gen Z to make Ayurveda mainstream,” the cofounder said in a statement.
In March last year, T.A.C raised $3 Mn from Wipro Consumer Care Ventures with participation from investors like Tricity Technologies’ Rahul Gupta and School of Design and Entrepreneurship’s Harsh Gupta. The startup has raised around $115 Mn so far.
In the statement, T.A.C claimed that it saw unprecedented growth over the past 10 months, growing over 300% during the period.
T.A.C competes with the likes of Khadi Essentials Healthcare, The Ayurveda Experience, Forest Essentials, and more in the core ayurvedic beauty and personal care (BPC) space. In the broader BPC market, it faces competition from beauty D2C brands such as IPO-bound Mamaearth, Wow Skin Science, and mCaffeine.
As per an Inc42 report, the BPC segment is expected to remain one of the fastest-growing spaces in the ecommerce sector. The segment is expected to grow at a compound annual growth rate (CAGR) of 27% in the 2022-2030 period, reaching a market size of $28 Bn by 2030.
SOURCE & CREDIT: INC42