Business Categories Reports Podcasts Events Awards Webinars
Contact My Account About

Haircare Start-Up Arey Closes Oversubscribed $4.15 Million Seed Round

November 18, 2022
November 18, 2022
Arey

Arey, the Los Angeles-based DTC haircare start-up focused on preventing and slowing the growth of gray hair, closed an oversubscribed $4.15 million seed round, doubling its original $2 million target.

WHO: Founded in 2021, Arey is one of the first functional beauty brands that targets aging hair with a proactive and science-driven approach and a specific focus on gray hair. The business was co-founded by CEO Allison Conrad, a leading entrepreneur who ideated the company based on her hair journey, and Jay Small, a former Paul Mitchell protégé and top professional celebrity hairstylist. Along with their team of medical advisors, including internal medicine MDs, dietitians, and chemical engineers, the brand offers a range of six proactive products that work together to restore hair health, including reducing the likelihood of increased gray hair growth.

WHY: The investment will be used for the research and development of new products and distribution expansion.

IN THEIR OWN WORDS: Conrad states, "We are not anti-gray, but rather want to provide both men and women an alternative to the current reactive option of hair dye. We are the wrinkle cream of hair care targeting those looking to prevent aging hair and customers who are in the early stages of graying hair."

Speaking to those who have already turned gray, Small adds, "Nearly 85% of women have colored their hair, 78% of which is at home. For years, the response to gray hair has been to cover it. Unfortunately, once this cycle begins, it's likely that each time you apply hair color chemicals to your scalp, healthy production of hair is stifled," he explains. "The average person covering gray will have to maintain color every 4 weeks, and will likely overuse hair color on areas of the hair that do not need coverage. This frequency and overexposure are a high payload of oxidative stress and could be contributing to an increase in gray hair with every application."

Anu Duggal, Founding Partner at Female Founders Fund, shares, "We are thrilled to co-lead Arey Grey's seed round in bringing a much needed science-driven system for addressing aging hair to consumers. The hair care category has been ripe for innovation and co-founders Allison and Jay have taken a preventive approach to hair health by creating a solution that both slows the graying process while also re-pigmenting hair color. Since launch they have seen tremendous organic demand from both female and male consumers with exciting product development in the pipeline. With a big vision to offer better solutions to consumers for hair care, we are excited to be backing this stellar team in their vision to transform hair health."

"Arey's science-driven, efficacious solutions and elevated education-based branding speak to consumers across genders in a differentiated way," said Greycroft Principal Alaina Hartley. "The Greycroft team is excited to support co-founders Allison and Jay as they build the category-defining brand in aging hair care."

"We built the business with strong unit economics from the beginning and a focus on profitability. We are thrilled that Female Founders Fund and Greycroft recognize the huge potential in this growing category we have created," Conrad adds.

DETAILS:

  • Arey closed an oversubscribed $4.15 million seed round, doubling its original $2 million target. Female Founders Fund and Greycroft led the round. 
  • Co-founder Allison Conrad personally funded the launch of the brand, and raised a $500K friends-and-family round about eight months later. 
  • The brand has experienced 1,100% YOY growth since its 2021 inception. Arey saw 975% in subscription growth last year, making up over 70% of its revenue.
×

2 Article(s) Remaining

Subscribe today for full access