[Funding Alert] D2C brand Beco bags $3 Mn Series A to improve R&D and Supply Chain Operations

Beco

Sustainable D2C brand Beco has raised $3 million in its Series A funding round, led by Rukum Capital along with Priyavrata Mafatlal, Better Capital, Prashant Pittie and Titan Capital.

Bimal Parekh, Sweta Amrish Rau, Arjun Purkayastha, Harish Narayanan, Rehan Shaikh, Shantanu Deshpande, Kolte-Patil Family Ventures, Gaurav Arora, Avinash Badaia and Exceed Entertainment also participated in the funding round.

Beco will use the proceeds for research and development activities, marketing and supply chain functions. It will also use the means to hire talent across verticals.

According to Beco, 67% of urban youth in India currently want to opt for sustainable products. And less than 25% of these teens were able to switch to sustainable solutions.

Aditya Ruia, Akshay Varma and Anuj Ruia founded Beco in 2019 to solve this problem. The Mumbai-based startup is a sustainable kitchen, home and personal care brand. It sells a wide range of products including tissues, bamboo facial wipes, dishwashing liquid, toothbrushes and biodegradable garbage bags. It claims that all its products are biodegradable and non-flammable.

Aditya Ruia, Co-founder of Beco, said, “The reason for such a large gap between what Indian youth wanted and what they got was the lack of availability of these (sustainable) products. We (the co-founders) realized that in this space we not only need to build a sustainable D2C brand, but also change consumer behaviour patterns to increase adoption and awareness (of sustainable solutions).

Originally, the three Co-founders were engineering and MBA graduates. Before Beco, Aditya and Akshay founded Quorg and Pet It Up, respectively, while Anuj previously worked with Procter & Gamble, according to their LinkedIn profiles.

Ruia further said that Beco uses biodegradable and compostable raw materials including corn starch and bamboo to produce toilet rolls, facial tissue, garbage bags and toothbrushes. In addition, it also uses a coconut enzyme-based formula to make liquid cleansers.

Understanding Indian consumption patterns

Consumption patterns, consumer personas and reasons for their purchases are distinct and discrete in India. “As part of this (consumer) market, we understand the nuances of tailoring products to each type of consumer. Our offering is also tailored to meet the expectations set by these consumers,” said Ruia.

In the early days, Beco faced challenges in developing sustainable products, bringing them to market at a certain price, and then selling them to end consumers. To overcome these challenges, the startup did green marketing. It has also built communities that effectively communicate its message to other consumers.

“Green marketing is a kind of informing consumers about the potential risks of using chemicals for their daily use while presenting the health benefits of the sustainable products we offer,” said Ruia.

Talking about the manufacturing process, the founder said that the Beco team generally designs the products themselves and then provides these designs to their contract manufacturing partners to develop sustainable products.

The startup said it aims to launch new products within its existing categories that will be more optimized, cheaper and more economical.

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