The millennial cofounders of feminine-care company Blume explain how they raised $3.3 million in just one month

Alannah PattersonTaran Ghatrora (left) and Bunny Ghatrora (right).

• 27-year-old Taran Ghatrora and 25-year-old Bunny Ghatrora are sisters and the cofounders of Blume, a company creating beauty and menstruation products that also aims to educate teens on puberty and sexual health.
• The company raised $250,000 in four months from angel investors during their first round of fundraising and $3.3 million in one month during their second round three months later.
• Before gaining capital, the sisters maxed out their credit cards and dipped into their students loans to keep the business afloat.
• They credit creating a sense of scarcity and being very clear about the impact funding could have on the business to their success.
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Many would argue that puberty is the most awkward time in a person's life. Yet Blume, a menstrual and self-care-focused startup, has made a business out of changing that narrative.

Founded by sisters Taran and Bunny Ghatrora, who are 27 and 25 years old respectively, Blume launched in June 2018. Taran serves as CEO and Bunny as COO, and the two manage a team of eight that works out of a rented office space in their native hometown of Vancouver.

Blume sells skin and period-care products, alongside accessories such as hats and totes. Their revenue has grown 10 times since October 2018, and customers can purchase their products on their website or find them at stores like Sephora, Urban Outfitters, and Anthropologie.

Kelsey CherryBunny Ghatrora (left) and Taran Ghatrora (right).

This past February, Blume raised $3.3 million in its second fundraising round while on a $2.5 million annual run rate, but the company began without any external influx of capital.

"When we first launched the company, we were students, so we didn't have any savings and were working part-time jobs to help juggle expenses," Bunny said. "Each month we would max [out] our credit cards to buy inventory, sell as much of it as we could, and use that funding to pay off our credit cards so we could purchase the next round of inventory. I was constantly trying to convince my bank to increase my card limits!"

The past few years have taught Taran and Bunny a lot about how to make your business successful - and the key to running it once it is.

Law school inspires the idea to sell organic and accessible feminine products

Taran was in law school studying the impact of periods on women and girls in developing countries when the idea for Blume occurred to her. She called Bunny, an accounting major, with the idea to create a company that offered a subscription service providing items such as organic pads and tampons across North America, and thus Blume was born.

On top of their product offerings they launched Blume University, "a blog that focuses on real talk and stories on self-care, women's health, puberty, periods, and beyond," Bunny said. Providing shame-free, medically accurate, and approachable education, they believe the blog's content is as integral to their mission as any of their products are.

To further their mission, this past fall Blume launched "The States of Sex Ed," a comprehensive and inclusive series of free sex-education presentations created in collaboration with certified sexual health educator Dee Stacey.

Raising millions in 30 days - and what it took to get there

This attention to their customer's needs allowed them to finally grow the capital they needed to fund their growing business. "For the first few years, finding capital to build our business was really challenging. Both Bunny and I were focused on building a sustainable company, and for the first year we recycled revenue," Taran said.

While their first attempt to raise capital in November 2018 lead to just $250,000 from angel investors over four months, the second round's $3.3 million came in just one month. "Raising money full time on the second attempt was crucial to our success, as it kept a sense of urgency," Taran explained.

Here's how she did it:

• Tightly packing meetings into a concentrated period of time - and devoting all of her energy to them. "Every response I received for an investor who wanted to meet or hop on a call, I pre-scheduled it for the following month," Taran said. "By the time it came around, my calendar was pre-packed with meetings and calls. This allowed me to close the raise by the end of the month, instead of dragging the process on for months." While Taran was fundraising, Bunny focused on the company's operations.
• Asking for a yes or no answer. "Investors will always say maybe, because they don't want to say no," said Taran. "They want to keep the conversation open and might change their mind. They want to see if someone else invests or something changes. I would kindly text investors close to the round closing and nudge them that we needed [an answer] by the end of the month. I let them know that either decision was fine and we totally understood, we'd just appreciate a definitive answer!"
• Creating a sense of scarcity. Taran suggested stating up front that you have a certain amount of money committed (only if you actually do, she emphasized) and that there's only X much left in the round. "We had half the round committed by mid month, so we were able to truly point to that and let others know that we were overcommitted," she said. "We opened the round up more and accepted $3.3 million, but if we had closed it out, the additional people would not have gotten into the round."
• Being very clear about what impact funding was going to have on the business. "Don't just say, 'I'm going to use the money to grow my business,' be hyper-specific," said Taran. "We knew which acquisition channels were working, so we could clearly explain what the catalyst would be for the business."
• Finding a lead investor. This is the hardest step in the process, said Taran, and really comes down to researching your investors. "People are going to ask you who your lead is, and they want someone to take the lead and start the trend," she said. "Often, it will say on their website if they lead rounds, but I find it's best to just ask them outright. A Tier 1 or Tier 2 investor is best, but also make certain that there's value alignment, that you've checked their references, and - if it makes sense for you - ensured that they have follow-up capital."

Listening to customers on social media

Blume places importance on meeting their customers where they are. "We solicit product feedback and our audience helps co-create future products through Instagram polls," Taran said. For example, Blume just released brand new packaging that's 100% recyclable based on previous feedback from customers.

The sisters additionally use social media as a key part of their customer service strategy, answering customer questions over Instagram direct messages. "We're also able to understand our customer's concerns or celebrations on a quicker and deeper level on these various platforms," said Taran. "This helps us to develop a stronger understanding of our audience needs and wants - so we can address them quickly!" said Taran.

Keeping the mission at the forefront

With the goal of changing how women's bodies are treated and discussed, Taran and Bunny put their heart and soul into making Blume an accessible and educational company. Almost a year and a half post-launch, they're just getting started - and encourage others to approach building a company with the same passion and clear goals.

"No one is ever truly 'ready' to start a business, you just have to take the first step," said Bunny. "Starting a company is confusing, difficult, and scary, but if you're willing to learn - and possibly fail - ask a lot of questions, and surround yourself with people who are smarter than you, the journey is worthwhile! Always remember your why and that it's about the journey, not the destination."

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