Naturohabit Private Ltd, the parent company of the direct-to-consumer (D2C) beauty and wellness brand Nat Habit, has successfully raised $10.2 million (INR 85 Crores) in its Series B funding round, with Bertelsmann India Investments leading the investment charge. Existing investor Fireside Ventures participated, and new investors such as Amazon India Fund, Mirabilis Investment Trust, and Sharrp Ventures joined the round.
Founded in 2019 by Swagatika Das and Gaurav Agarwal, Nat Habit specializes in organic skincare products, offering a range that includes hair oils, masks, scrubs, and face creams. The New Delhi-based startup plans to utilize the fresh capital for research and development, product diversification, brand building, offline expansion, and talent acquisition.
Approximately $2 million from the latest fundraise will be allocated to facilitate exits for early-stage backers, providing returns of 4.5-5 times their initial investment within a four-year period.
In the Series A funding round in April last year, Nat Habit secured $4 million with Fireside Ventures leading the investment.
The startup currently boasts an annual recurring revenue (ARR) of INR 82 Crores and aims for a substantial 4X growth, targeting an INR 350 Crores ARR within the next two years.
India’s burgeoning D2C market, projected to reach $100 billion by 2025, has witnessed significant growth in recent years. Factors such as the Covid-19 pandemic, increased internet penetration, digital infrastructure expansion, and the rise of millennials have contributed to the success of D2C brands.
The D2C sector has become an attractive investment destination, with notable funding rounds in the space. For instance, Innovist, the parent entity of D2C consumer brands Bare Anatomy and Chemist at Play, recently raised $7 million in its Series A funding round led by Amazon Smbhav Venture Fund.
With over 190 million digital shoppers, India boasts the world’s third-largest online shopping base. The evolving ecosystem presents new-age D2C brands with opportunities, tapping into the growing appetite for innovation among Indian consumers and a shift away from traditional players, as highlighted in Inc42’s report.
In this thriving landscape, fashion and clothing startups are expected to flourish, reaching a potential market size of $43.2 billion by 2025, according to another Inc42 report. Emerging D2C brands, including Mamaearth, CaratLane, and Nua, have demonstrated rapid growth, achieving INR 100 Crores in revenue within just a couple of years.
