For years, the medical apparel market consisted of sterile, ill-fitting scrubs that lack any hint of style. Over the last ten years, a number of new entrants prioritized fashion, aesthetics, and form-fitting apparel for this market. Jaanuu is a direct-to-consumer and manufacturer of performance-oriented, premium scrubs. Founded by a brother and sister duo consisting of a former private equity investor and a physician, Jaanuu offers a line of functional, form-fitting, and comfortable medical apparel and accessories that healthcare professionals are raving about. They’re not the only ones; President Obama was photographed sporting a Jaanuu mask.
LA TechWatch caught up with Jaanuu CEO and Cofounder Shaan Sethi to learn more about the company’s start, impressive growth, latest round of funding, which brings the total funding raised to $97.6M, and much, much more.
Who were your investors and how much did you raise?
Eurazeo invested $75M into Jaanuu for a minority stake in the business. The transaction was Jaanuu’s Series B.
Tell us about your product or service.
Jaanuu is the only physician-founded and led scrubs brand in the healthcare apparel industry. I cofounded the brand in 2013 with my sister Dr. Neela Sethi Young. We center the medical professional in our name – a derivative of the Hindi word for “life” – to honor and celebrate those that put everyone else before themselves.
What inspired the start of Jaanuu?
During her early days in medical school, Dr. Neela was dismayed at the vending machine scrubs she was handed. For a profession that is having to perform at the peak of their ability day in and day out, the uniform should be empowering. Neela came to me with this idea of disrupting the scrubs scene, and building a stylish, comfortable, and performance-driven medical apparel line that was missing from the market.
How is it different?
As a physician-led company, Jaanuu, unlike any other scrubs brand on the market, can authentically speak to the healthcare professional experience and create products that provide maximum function and support to help them look and feel their best, on and off the shift.
What market you are targeting and how big is it?
Frost & Sullivan puts the total addressable market for healthcare apparel at $12B in the U.S. and $79B globally.
What’s your business model?
Started as a direct-to-consumer brand and now distributing product in various other channels.
What are your post-COVID office plans?
Jaanuu is currently remote for the foreseeable future.
What was the funding process like?
Ran a robust, very competitive process. We were focused on finding a partner that was led by former operators who understood how to marry iconic product with an iconic brand.
What are the biggest challenges that you faced while raising capital?
Q4 is the busiest time of the year, and when layering on the complexities that come along with Covid, the fundraising process created an exorbitant amount of work for the team. That said we got to an extraordinary outcome with an extraordinary partner in Eurazeo.
What factors about your business led your investors to write the check?
Now more than ever, frontline workers and the medical industry are at the epicenter of our world with the ongoing COVID-19 pandemic, this investment proves there is demand for modern innovative products that support our medical professionals on and off the shift.
With Dr. Neela’s involvement, Jaanuu has created an iconic brand that is authentic and deeply in tune with the healthcare professional experience. This has allowed a “for us by us” mentality where Jaanuu is helping HCPs achieve greatness while reminding the world of the greatness and contributions of HCPs
What are the milestones you plan to achieve in the next six months?
This infusion of capital will allow for broadening of our product offerings, for both assortment and styles, but also offering that to a wider audience. We are mobilizing our marketing efforts to build greater awareness of our brand, first domestically, but then internationally.
What advice can you offer companies in Los Angeles that do not have a fresh injection of capital in the bank?
Raising capital and partnering with an investor is like a marriage. Founders ought to do some soul-searching to determine if he/she wants to go at it alone (i.e. bootstrapping) or partner with someone who in the end could be accretive or dilutive to the business. Also, make sure to 1) identify the size of the prize with your business, 2) what exactly you are trying to accomplish personally and for your business, and 3) then make the hard decision around raising outside capital.
Raising capital and partnering with an investor is like a marriage. Founders ought to do some soul-searching to determine if he/she wants to go at it alone (i.e. bootstrapping) or partner with someone who in the end could be accretive or dilutive to the business. Also, make sure to 1) identify the size of the prize with your business, 2) what exactly you are trying to accomplish personally and for your business, and 3) then make the hard decision around raising outside capital.
Where do you see the company going now over the near term?
Jaanuu sits at the intersection of style, performance, function, and protection – a formula that can be expanded and we are excited for more people, both healthcare professionals and beyond, to experience these amazing products.
What is your favorite restaurant in LA?
Il Pastaio.
