The brand, owned by Ecotrail Personal Care, received around $2m from Addvantis Enterprises, the parent company of Ayurvedic aromatherapy skin care and hair care brand Vedearth. Prior to that, Venture capital firm GVFL invested $823,680 into the brand.
“We at Addvantis strongly believe in eco-ethical, holistic wellness… We are excited to partner with Iba in its journey as it operates with similar authenticity, transparency and integrity to create its products,” said Divya Dinesh of Addvantis Enterprises.
Eyes on expansion
During the press conference, CEO of Ecotrail Personal Care Mauli Teli said that the money raised will go into funding the brand’s expansion and spreading brand awareness.
Currently, the brand is available across 12 states in India, as well as countries such as South Africa, US, Australia, Russia and Kazakhstan. However, the brand focusing their resources on domestic expansion.
“Having proven the product-market fit which fills the need among consumers for ethical personal care products that align with their lifestyles 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,” said Teli.
The brand’s co-founder also added that the company does plan to cater to the growing overseas market, but expressed excitement over Iba’s unique position to grow rapidly on home ground.
Flourishing Muslim population
The size of India’s Muslim population is only second to Indonesia, where 11% of the world’s total Muslim population resides, according to 2015 study by Pew Research Centre.
The report estimates that India may surpass Indonesia and Pakistan to become the country with the world’s largest Muslim population by 2050.
According to the company, the global Halal market was valued at $63bn in 2017 and is expected to hit $89bn by 2023.
While the market is strongly driven by an increasing Muslim population, Teli added that Halal products attract non-Muslim consumers who are looking for clean, safe, vegan and cruelty-free products.
Teli shared that the company will also be focused on hitting the brand’s $14m target by 2021.
“We’re targeting five times growth this financial year,” Teli stated. “We are on track to achieve [$14m] annual revenue run rate by 2021.”
She explained that her confidence in Iba Halal Care is rooted in having the first mover advantage and being the only brand in India with a full range of Halal-certified personal care products that are both affordable and of high-quality.
Sanjay Randhar of GVFL agreed, stating that Iba had grown “phenomenally” since GVFL’s investment a year earlier.
“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,” he said.