Arey Closes Oversubscribed $4.15 Million Seed Fund Round

E-commerce business Arey has closed an oversubscribed $4.15 million Series Seed financing round, 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. 

 

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

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 protégé and top professional celebrity hairstylist, aligned with educating clients on hair color loss. Along with 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 an inside-out and outside-in approach with a supplement and hair serum, The Duo of shampoo + conditioner, that work together to restore hair health including reducing the likelihood of increased grey hair growth as well as 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 1,100% 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.
 

“We are not anti-grey, but rather want to provide both men and women an alternative to the current reactive option of hair dye,” said Conrad. “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.” 

 

“Nearly 85% of women have colored their hair, 78% of which is at home,” said Small. “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 four 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. Over a year on the market, 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 you grow thicker, fuller, healthier hair overall to consumers in North America and Canada. With six current products in their portfolio, the company’s direct-to-consumer, subscription-based business model provides an easy refill plan, ensuring consumers are able to easily maintain a continued high level of hair health.