Ahmedabad-based India’s first halal and vegan cosmetics brand Iba Halal Care has raised around ₹21 crores ($3 million) in series A round. The funds come from Addvantis Enterprises, a Bengaluru-based startup selling herbal personal care products under the brand name Vedaearth.
The funds raised will be used to expand presence across the country by creating new product categories to capture the market.
“With this round, Iba looks to expand nationally and capture a leadership position in the natural, vegan and halal cosmetics market, a clear gap that is large enough to become a ‘new category’ and redefine the market with Iba having the first mover advantage,” said cofounder Mauli Teli.
Ecotrail Personal Care, the company that owns the brand Iba Halal Care, was founded by two sisters Mauli and Grishma Teli in 2012. The products offered under the brand Iba Halal Care manufactured from natural, pure, vegan, and animal cruelty-free.
It offers its products across various categories like hair, skin, body, and eyes. The brand sells its products online through various e-commerce platforms like Amazon, Flipkart, Snapdeal, Nykaa, Purplle, and BigBasket. It also sells offline through various stores located across Ahmedabad, Aurangabad, Bengaluru, Bharuch, Delhi, Surat, and Vadodara.
The company started with an initial investment of ₹5 crores from family members and some amount in form of bank debt. Later, Ecotrail Personal Care raised an undisclosed amount of funds from an Ahmedabad-based venture capital firm GVFL in November 2017.
Other brands in the cosmetics and personal care space competing with Iba Halal Care include Himalaya, Lotus, Biotique, VLCC, among many others.
According to a recent study by RedSeer Consulting, currently, the Indian cosmetics industry categorised into skin care, hair care, oral care, fragrances, and colour cosmetics segment is worth around $6.5 billion. It is expected to grow at a CAGR of 25%, to reach $20 billion by 2025.