# Afrocenchix Financial Model D2C brand selling natural, vegan-certified hair-care products for afro and curly hair. - Canonical: https://finamodel.com/startups/afrocenchix - Excel download: https://finamodel.com/startup-models/afrocenchix.xlsx - Category: Consumer/DTC - Model type: Unit-economics / DTC - Funding round: Seed - Funding: $12M - Founded: 2021 - Geography: UK HQ (London, N22). US and West Africa expansion planned for 2023. [DECK, slide 12] - Customer: B2C ## About the company Afrocenchix is a DTC hair-care brand for afro and curly hair, selling vegan-certified natural products across core shampoo, conditioner, cream, spray, and oil SKUs. It focuses on formulation, inclusivity, and faster R&D than traditional beauty brands. Ninety-five percent of sales are direct through Shopify, with selective retail distribution through partners such as Whole Foods and Holland & Barrett. It reported strong organic growth alongside paid acquisition and product sets priced from travel sizes to full routines. The model is DTC consumables P&L. Traffic, conversion, repeat orders, average basket, SKU mix, retail doors, COGS, fulfillment, and CAC build revenue and contribution margin. Retention and wholesale expansion are key drivers. ## What's included - 5-year monthly revenue build with stage-appropriate growth assumptions - Full P&L, headcount plan, and operating-expense schedule - Cash-flow statement, runway, and burn-rate tracking - Valuation via exit multiple with a DCF cross-check - Returns analysis with MOIC and IRR - Unit economics including CAC, LTV, payback, and cohort retention ## Product & value proposition - 6 core SKUs + accessories: Swirl (silicone-free conditioner), Swish (sulphate-free shampoo), Sheen (moisturising hair spray), Smooth (moisturising hair cream), Seal (hair oil), and a styling butter in beta. - RRP: £5.99–£15.99 for travel sizes; £40–£85 for full-sized sets. - 91–100% naturally derived ingredients; only vegan-certified brand in the category. - R&D cycle 6–12 months (2x faster than industry standard); all products developed in-house and tested on real afro hair. - Education-led: expert content + chatbot (in beta May 2021) as part of the "making natural simple" brand platform. ## Market - TAM: Global afro product market - $48.6B+. - Population: 3.2 billion people globally with afro/curly hair. - Demand signal: Black and mixed-race women spend 6x more on cosmetics than average; 70% of Black women feel the high street does not meet their health and beauty needs (Superdrug report). - Generational shift: 54% of Gen Z vs 30% Baby Boomers in the US identify as Black and Brown. - No SAM/SOM figures in deck. - UK market leadership targeted by 2022. ## Revenue model - Primary channel: D2C via Shopify (95% of sales). - Secondary channel: retail (Whole Foods UK, Holland & Barrett, independent health food stores; Superdrug launching Summer 2021). - Pricing: travel sizes £5.99–£15.99; sets £40–£85. - Volume target stated in use-of-funds: outsourcing to sell 379K bottles. - Revenue figure: redacted ($$$) for last 12 months and run rate. - Fundraise amount: redacted ($$$), split across Team / R&D+Manufacturing / Marketing. ## Traction & metrics - Last 12 months revenue: redacted. Revenue run rate: redacted. - Channel split: 95% D2C. - Monthly growth rate: 6% from paid acquisition; 82% organic. - Online traffic: avg monthly traffic redacted; up 21% vs prior quarter. 1st page on Google for afro hair care. - Online sales growth: 147x from Q1 2017 to Q1 2021 (Shopify store launched Q1 2017; pre-seed investment received Q4 2018; team hired Q4 2019; product launch Q2 2020; paid ads turned off after Q2 2020; Q1 2021 is the highest bar). - YoY revenue growth (Jun 2019–Jun 2020): 1,670%. - Customer reviews: 1,500+; average rating 4.7/5. - Black Pound Day one-day sales: redacted ($$$). - Projections over next 5 years: redacted ($$$+). ## Unit economics - Adjusted LTV:CAC ratio: 17:1. LTV and CAC absolute values redacted ($$:$$). - LTV measured over 3.5 years of real customer spend, reduced conservatively for retention rate. - Top 1% of customers: spent $$$$ in last 2 years (redacted). - Blended CAC: includes Facebook and Google spend. - Average basket size: redacted ($$); up 56% over last 3 years. - CAC payback: recovered within the first basket. - Customer retention rate: redacted (#%); stated as well above industry standard of 27%. - Average repurchase interval: 1.6 months (improved from every 5 months previously). - Online margin: redacted (#%); retail margin: redacted (#%). Strong margins cited due to in-house development and vertical supply chain integration. ## Competition / moat - Market positioned as fragmented: incumbents are either toxic/synthetic (Cantu, Dark & Lovely, ORS, Revlon Realistic) or wholesale-only natural brands (SheaMoisture/Unilever, Carol's Daughter/L'Oréal, FORM/P&G). - White space: safe + sustainable + D2C - afrocenchix claims this quadrant alone. - Notable comparable exits: SheaMoisture ~$700M (Unilever); Carol's Daughter ~$27M (L'Oréal); FORM ~$40M (P&G); CurlMix raised $1.2M. - Moat: 1,500+ reviews / 4.7-star brand equity; direct customer data flywheel; organic growth (82% of acquisition); in-house R&D; vegan certification. - Retail entry: first afro hair brand in Whole Foods UK and Holland & Barrett. ## Team & funding ask / use of funds - Founders: Rachael Corson (LLB/MSc Birmingham/UCL; ex-Tesco, Kraft) - Strategy, Legal, E-commerce; Joycelyn Mate (BA Birmingham; ex-Tesco, SEO London) - Finance, Logistics, Retail Sales. - Team: 9 people including Marketing Manager, Digital Marketing Manager, Supply Chain Manager, Content/Social Coordinator, Full-Stack Developer, Lead Production Assistant. - Raise amount: redacted ($$$). Split three ways - all three buckets labelled $$$. - Use of funds: - Team: Cosmetic Chemist, Content Coordinator, Customer Experience Coordinator. - R&D + Manufacturing: 3 product releases; lab equipment; outsourcing to sell 379K bottles; scaling in-house ops. - Marketing: influencers, content creation, digital ads. - Awards: WeWork Creator Award 2018 & Global 2019; KPMG Black Entrepreneurs Award 2018; Precious Awards 2019. Press: Glamour, Vogue, Forbes, BBC, Cosmopolitan, Refinery29, Evening Standard, Metro, Hello. ## Recommended financial model - **Archetype + why:** DTC consumer goods P&L with retail channel layer. Revenue is primarily unit-volume driven (bottles/SKUs sold) via a Shopify DTC channel, with a secondary retail wholesale channel at a different margin. Matches the company's stated 95% D2C / 5% retail split and the 379K bottle volume target. A cohort-based LTV model sits alongside to validate the 17:1 LTV:CAC and project retention-driven repeat revenue. Not SaaS, not marketplace, not 3-statement at this stage - the priority output is a 3–5 year P&L and unit economics dashboard. - **Forecast horizon & granularity:** Monthly for Year 1 (2021 Seed period); quarterly for Years 2–5 (through Series A at 2023–24 and Global Expansion 2024–25). - **Key drivers & assumptions:** | Driver | Value | | -- | -- | | LTV:CAC ratio | 17:1 | | CAC payback period | 1 basket / immediate | | Avg repurchase interval | 1.6 months | | Avg basket size (£) | Redacted; shown as $$ | | Customer retention rate | Redacted; >#27% industry benchmark | | D2C revenue share | 95% | | Retail revenue share | 5% | | Monthly organic growth rate | 82% of acquisitions are organic | | Monthly new customer acquisition growth | 6% | | Volume target (near-term) | 379K bottles | | SKU count | 6 core + accessories, +3 new launches planned | | Avg DTC price point | £5.99–£85 (travel to full sets); blended ~£25–£35 | | DTC gross margin | Redacted; described as "strong" | | Retail gross margin | Redacted; lower than DTC | | Headcount additions | +3 hires this round; team currently 9 | | R&D spend | Lab equipment + outsourced manufacturing for 3 launches | | Marketing spend (% of revenue) | Seed-funded digital ads + influencers; currently heavy organic | | YoY revenue growth (historical) | 1,670% (Jun 2019–Jun 2020) | | Forecast revenue growth (5-year) | Redacted ($$$+) | | US/West Africa expansion timing | 2023 | - **Scenarios (Base / Bull / Bear - which variables flex):** - Base: 6% monthly new customer acquisition growth, DTC margin at 65%, retention at 35%, 3 new SKUs on time. - Bull: retention climbs to 45%+, Superdrug retail launch accelerates wholesale revenue, 5-year projections hit, US launch on schedule 2023. - Bear: paid acquisition costs spike (CAC deteriorates), Superdrug launch delayed, retail margin compression, FX headwind on US expansion. - **Required sheets / outputs:** 1. Assumptions dashboard (all input drivers in one place) 2. Revenue build: DTC volume × ASP + retail wholesale channel 3. Cohort LTV model (monthly cohorts, 1.6-month repurchase cycle, retention curve) 4. COGS & gross margin by channel (DTC vs retail) 5. Opex P&L (team, R&D, marketing, fulfilment/ops) 6. Unit economics summary (CAC, LTV, LTV:CAC, payback period) 7. Scenario toggle (Base / Bull / Bear) 8. Funding waterfall: use of raise proceeds mapped to cost lines ## Frequently asked questions ### Is the Afrocenchix financial model free? Yes. The Afrocenchix model is a free Excel download with live formulas. ### Can I change the assumptions? Yes. The workbook is editable and its live formulas recalculate when assumptions change.