Start-up Stars: How Malini Adapureddy is prioritising transparency & customer trust

Adgully has been turning the spotlight on the entrepreneurs who fought against all odds to bring their dreams to fruition in our special series – START-UP STARS. We at Adgully wholeheartedly support the ‘Vocal for Local’ movement and have been featuring numerous local/ homegrown businesses, brands, and Apps in the country.

Deconstruct, founded by Malini Adapureddy, is a skincare brand known for its dedication to consumer education and transparency. Their products feature powerful combinations of active ingredients, addressing multiple skincare concerns, and undergo rigorous research and development before launch. With $2 million seed fund and numerous accolades, Deconstruct has quickly gained recognition in the skincare industry.

RootCos, another venture by Adapureddy, specialises in hair and scalp care. They offer tested formulations with a ‘scalp-first’ approach, ensuring their products are easy to apply, non-oily, and free from product buildup. RootCos, like Deconstruct, focuses on consumer education and transparency, aiming to provide comprehensive information about products and empower consumers to make informed decisions in the skincare industry.

In conversation with Adgully, Malini Adapureddy, Founder & CEO, Deconstruct & RootCos, speaks about setting up her two ventures, customer acquisition strategy, prioritising transparency and customer trust, establishing a science-based skincare brand for Indian consumers, and much more.

On the company’s inspiration and problem-solving objective

The inception of Deconstruct and now RootCos was driven by a combination of personal experiences and business insights. On a personal level, I was dissatisfied with the opaque marketing practices of many skincare brands in the country and their lack of innovative, trustworthy products. This inspired the desire to create a brand that prioritized transparency and customer trust. On a business front, I observed that the Indian skincare market was inundated with natural and Ayurvedic products, often lacking detailed information about their ingredients and compositions. This led to the vision of establishing a science-based skincare brand tailored to address specific skincare issues for Indian consumers. Additionally, over time through our  journey and interacting with new age customers, we came to the realization that 90% of our consumers are either using substandard products or don't have access to good products to treat their hair and scalp concerns. That is how RootCos was also born and we intend to achieve the same love for superior & unique formulations for this brand, as we did for Deconstruct over the years.

On overview of products and unique features

Deconstruct: Deconstruct distinguishes itself by promoting an information-based decision-making process, providing customers with valuable knowledge before making a purchase. Our products feature “power combinations” of active ingredients, enabling each product to address multiple skincare concerns effectively. Unlike many skincare brands, Deconstruct follows a rigorous research and development process that can span up to 18 months before a product is launched.

RootCos: RootCos stands out for its tested formulations, a “scalp-first” approach, and proven ingredients. Their products are easy to apply, ensuring they have no side effects, aren't oily or greasy, and don't result in product buildup.

On competitive differentiation

Deconstruct and RootCos set themselves apart by prioritizing consumer education and transparency. They place information and knowledge above impulse buying, providing extensive details about ingredients and product formulations. This approach aims to bridge the gap between consumers and the production processes in the skincare industry.

On milestones and growth plans

• Deconstruct was launched with a $2 million seed fund from investors such as Kalaari Capital, Binny Bansal and Beenext.
• Malini was selected to be a part of Kalaari Capital’s flagship program - CXXO (Batch 2022), which is an initiative for women-founder CEOs building an early-stage disruptive technology.
• Deconstruct was ranked 12th in the YourStory '500 Challenger Brands' 2022 list and was also featured in Inc42's list of India's 42 Fastest Growing D2C Brands
• We also won the Bronze at the Social Samosa SAMMIE Awards 2022 for 'Best Use of Branded Content and Creators’ and were featured in Femina Power Brands 2023
• Additionally, Malini was featured in Social Samosa ‘Superwomen of the Year’ 2023

On evolution and challenges faced

Our journey has been marked by various challenges. Initially, building a team and establishing credibility were significant hurdles. Overcoming the impact of COVID-19, growing the brand, and finding ways to differentiate in a competitive market were also challenging. However, with a dedicated team, these obstacles were successfully surmounted.

On contributions to the industry and community

We aim to address the gap in the Indian skincare market by providing extensive information about ingredients and scientific methods and to educate consumers empowering them to make informed skin care decisions, contributing to the development of a more knowledgeable consumer base in the beauty and personal care industry.

On problem solving

Deconstruct and RootCos address the problem of consumer confusion in the crowded skincare space by prioritising education and providing detailed information about products. We aspire to guide consumers toward making informed decisions rather than impulsive purchases.

On funding and investors

The company has secured a total of $2.4 million in funding from investors, including Kalaari Capital, Binny Bansal, and BEENEXT.

On target customers and acquisition strategy

The target audience for Deconstruct and RootCos includes individuals aged 25-35 in urban and rural India, with a preference for content consumption in both native languages and English. We acquire customers primarily through online channels, leveraging their strong online presence.

On current challenges

The challenges currently faced by the company include managing inventory reserves, expanding marketing efforts across various channels to increase product awareness, and addressing expertise gaps within the team.

On founding team’s background and expertise

The founding team brings a wealth of experience, including an MBA from INSEAD, dual degrees in engineering from IIT Kharagpur, and previous roles at major companies such as Flipkart, Procter & Gamble, and The Kraft Heinz Company.

On growth plans and vision

We envision building a portfolio of brands for the knowledge economy, focusing on providing customers with comprehensive information about products and their ingredients. Growth plans include channel expansion, category extension, global expansion, mass market reach, and significant revenue growth.

On Key Performance Indicators (KPIs)

The company measures success through key performance indicators such as total revenue, customer acquisition cost, customer lifetime value, customer retention rate, average order value, website traffic, and social media engagement.