Arey, an e-commerce business poised to disrupt the hair care industry, is pleased to announce that it has closed an oversubscribed $4.15 million Series Seed financing round, far exceeding its original $2 million target. Female Founders Fund and Greycroft acted as the lead investors. Funds generated through this round of investment are expected to be focused on R&D and distribution expansion.
Launched in 2021 and with six current products in their portfolio, Arey offers science-driven products formulated with vitamins, antioxidants, and peptides to help delay and re-pigment grey hair from the inside-out and outside-in, while also helping consumers grow thicker, fuller, healthier hair overall.
Arey is one of the first functional beauty brands that targets aging hair with a proactive and science-driven approach, with a specific focus on grey hair. Scientists have identified that genetics only account for approximately 30% of grey hair. Grey hair can be a message from the body about what may be lacking. Vitamin deficiencies due to diet and lifestyle choices associated with oxidative stress, and even chemicals in the dyes used to cover grey hair can be contributors.
Arey was co-founded by CEO Allison Conrad, a leading entrepreneur who ideated the company based on her own hair journey, and Jay Small, a former Paul Mitchell protege and top professional celebrity hair stylist aligned with educating clients on hair color loss.
Developed by their team of medical advisors including internal medicine MDs, dietitians and chemical engineers, the brand offers a range of products including The System which incorporates a supplement and hair serum, and The Duo of shampoo and conditioner that work together to restore hair health. These products reduce the likelihood of increased grey hair growth as well as promote thicker, fuller, and more vibrant hair. Arey gets to the root of the problem with a proactive hair care system that can be implemented at the first signs of grey by preserving and even restoring pigment.
Tapping into a clear demand, the brand has experienced 1100% YOY growth since its 2021 inception. Products are available via one-time purchase or subscription basis. With the latter, Arey saw 975% subscription growth in the last year, making up over 70% of their revenue.
Conrad states, “We are not anti-grey, but rather we 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 greying hair.”
Speaking to those who have already turned grey, Small adds, “Nearly 85% of women have colored their hair, 78% of which is at home. For years, the response to grey 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. The average person covering grey 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.” Arey has proven successful in decreasing this need, thwarting the aging process of hair.
Female Founders Fund, one of Arey’s chief investors, is the pre-eminent early-stage fund investing in female-founded technology companies with $100M under management across three funds. Since its founding in 2014, Female Founders Fund has invested in over 70 of the fastest growing female-led companies nationwide.
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 greying 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.”
Greycroft is a seed-to-growth venture capital firm that partners with entrepreneurs of all backgrounds to build category-defining companies. They have deep experience investing in consumer, enterprise, digital health, and fintech sectors around the globe and work as a team to support and advise entrepreneurs, empowering them to execute their visions.
“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,” Conrad adds. “We are thrilled that Female Founders Fund and Greycroft recognize the huge potential in this growing category we have created.”
Learn more about Arey, "The Wrinkle Cream of Haircare," at areygrey.com.
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