Early-stage investment firm DSG Consumer Partners has invested in personal care products maker Arata Zero Chemicals, according to VCCEdge, the research platform of News Corp VCCircle.
Arata, operated by Slick Organics Pvt. Ltd, sells vegan and chemical-free unisex skin and haircare products mainly on e-commerce platforms and its own website. It sells in select offline stores in the Delhi-NCR region as well.
The company will use the money to develop and launch new products and for marketing campaigns.
Arata was set up in February 2018 by Dhruv Madhok, a former strategy consultant in the US and the UAE, and Dhruv Bhasin, a former finance executive in the UK and India.
Clove Legal acted as the legal adviser to DSG Consumer Partners for the transaction.
The Economic Times, which first reported the development, stated that Arata secured Rs 3.5 crore in a seed round led by DSG Consumer.
DSG Consumer Partners
The venture capital firm had marked the final close of its second fund at $50 million (Rs 319 crore) in August 2017.
Some investments from its second fund include kids apparel brand Small Label Pvt. Ltd, which offers garments and accessories for infants and kids under the brand name of Born, cold brew coffee maker Sleepy Owl Coffee Pvt. Ltd , cold-pressed juice manufacturer Raw Pressery, art venture Insignia Art Collect Pvt. Ltd and tech-enabled motorbike rental startup Tazzo Technologies Pvt. Ltd, which shut down earlier this year.
DSG Consumer Partners’ had raised $12 million for its first fund and made 21 investments starting in 2013, which included mobile payments service provider Mswipe Technologies and personal fitness firm GOQii.
Deals in the space
A number of companies in the broader beauty and wellness space have recently attracted investor interest.
In September, mid-market private equity firm Lighthouse Advisors had invested in beauty e-tailer Nykaa.
In June, Mumbai-based Manash Lifestyle Pvt. Ltd, which operates beauty products and services marketplace Purplle.com, had secured around Rs 17.50 crore ($2.56 million) from a clutch of investors.
In the same month, fast-moving consumer goods maker Emami Ltd said that it had picked up a 7.54% stake in US-based beauty care products firm Loli Beauty Inc. for $565,000 (Rs 3.83 crore).
