Ahmedabad-based Ecotrail Personal Care Pvt. Ltd. that owns the personal care and cosmetics brand – Iba Halal Care – has raised Rs 15 crore in series A1 funding from Bangalore-based Addvantis Enterprises, LLP. that owns the ayurvedic aromatherapy skin care and hair care brand – Vedaearth.
Iba is India’s first and only halal certified and vegan brand of personal care and cosmetics products offering over 100 SKUs across skin care, hair care, makeup and fragrances.
Iba embraces an eco-ethical philosophy and offers a wide range of Skincare, Haircare, Color Cosmetics and Fragrances. The growing product portfolio of 100+ SKUs includes skin creams and lotions, foundations, compacts, hair colors, hair oil, shampoo, lipsticks, nail colors, kajal, eye liner and exotic fragrances.
All Iba products are not merely natural but also pure and hygienically manufactured, free of animal ingredients and cruelty-free. They have been formulated to meet the ethical needs of all consumers, including Muslims, Jains, vegetarians and vegans.
Iba uses multiple distribution channels of exclusive stores, online sales and a growing footprint in general and modern trade across the country to make its products available to its target consumers. Iba products have found acceptance in exports too.
Mauli Teli, CEO of Ecotrail Personal Care Pvt. Ltd., said, “We are thrilled to have raised this round of funding from Addvantis Enterprises, LLP. Having proven the product-market fit which fills the need gap among consumers for ethical personal care products that align with their lifestyle and are safe and effective as well, we now plan to scale the brand nationally both through expansion in the general trade and online channels within India and also cater to the growing export market demand. We have the first mover advantage by being the only brand in India that has a full range of halal certified and vegan cosmetics which are of high quality and affordable. We intend to maintain the same by investing in brand awareness and product availability to our target customers. We target 5X growth this financial year compared to the last and are on track to achieve a Rs 100 crore annual revenue run rate by 2021.”
The global halal cosmetics market reached a value of US$ 63 Billion in 2017. The market value is further expected to reach US$ 89 billion by 2023, exhibiting a CAGR of 5.8 percent during 2018-2023. The market is strongly driven by an increasing Muslim population which now accounts for over a fifth of the global population and is also attracting non-Muslim consumers as Halal beauty products symbolize safety, cleanliness, hygiene, and free of animal ingredients. With the younger generation emerging as more conscious consumers, the overall spending on halal cosmetics is increasing. With India having world’s second largest Muslim population and a large number of vegetarians and vegans, Iba is uniquely positioned to grow rapidly in its home market.
Divya Dinesh of Addvantis Enterprises, LLP, remarked, “We at Addvantis strongly believe in eco-ethical, holistic wellness which is also embodied in our in-house Ayurvedic Aromatherapy venture – Vedaearth. We are excited to partner with Iba in its journey as it operates with similar authenticity, transparency and integrity to create its products.”
Sanjay Randhar, GVFL MD, remarked, “Within a year of GVFL’s investment, Iba has grown phenomenally and with the new round of funding Iba is poised to strengthen its leadership position in the Natural, Vegan and Halal cosmetics brands market. Iba with its first mover advantage has the potential to redefine the market by creating a new category of halal cosmetics in the ever evolving Indian retail space.”
Bangalore-based Masterkey Holdings Private Limited advised to raise funds for the company.