In a strategic move, personal care brand VLCC is poised to acquire Ustraa, a popular men’s grooming brand, with the support of Info Edge and other investors. The acquisition will involve a share swap and a secondary buy-out, enabling Ustraa to receive additional investment from VLCC to fuel its growth.
Following the completion of the acquisition, Ustraa’s existing stakeholders, including Info Edge, 360 One (formerly IIFL Ventures), and Wipro Consumer Care Ventures, will become shareholders of VLCC. This development marks VLCC’s entry into the thriving men’s grooming market.
The founders of Ustraa, Rahul Anand and Rajat Tuli, will continue their involvement with the brand, assuming leadership in VLCC’s direct-to-consumer (D2C) operations.
Established in 2015 and owned by Happily Unmarried, Ustraa offers a range of products such as fragrances, hair care, face care, and beard care items. The brand boasts approximately 2.2 million customers on its app, with online channels accounting for 67% of its sales.
During the fiscal year ending in March 2022, Ustraa achieved a remarkable 70% growth in scale, reaching Rs 67.87 crore in revenue, while maintaining steady losses of Rs 27.91 crore during the same period.
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 witnessed a surge in losses, amounting to Rs 30.88 crore, while Beardo managed to achieve profitability, generating Rs 75 lakh in profits during the same fiscal year.
Ustraa has secured over $10 million in funding to date from investors such as Info Edge, Wipro, and IIFL. Most recently, it raised Rs 16.8 crore or $2.1 million from its existing backers.
Earlier this year, global investment firm Carlyle acquired a majority stake in VLCC. With a history of investing in renowned brands like Beautycounter, Every Man Jack, and Delhivery, among others, Carlyle’s involvement further strengthens VLCC’s growth prospects.