Nat Habit, a direct-to-commerce beauty and wellness brand, has secured $10.2 million in a series B funding round. The leading investor in this round was Bertelsmann India Investments.
Fireside Ventures, an existing investor, joined the funding round, along with other investors like Amazon India Fund, Mirabilis Investment Trust, and Sharrp Ventures, the company said in a statement on Monday.
Before this round, the company had already gathered around $7 million in total funding. Out of the newly acquired $10.2 million, approximately $2 million is earmarked for providing early-stage investors with exits, promising a remarkable 5X returns within four years. Peak XV Partners, formerly known as Sequoia India and Southeast Asia, is among the company’s previous investors.
Swagatika Das and Gaurav Agarwal founded Nat Habit, which is currently generating annual recurring revenues of Rs 82 crore. The company plans to utilize the recently acquired funds for various purposes, including growth, expansion into new categories, retail, research and development, and talent acquisition. Notably, Nat Habit manufactures all its products, comprising about 200 different stock keeping units (SKUs), in-house.
Among Nat Habit’s diverse product range are moisturizers (malais), hair oils, facewash, ubtans, henna, and lip scrubs. These products are crafted using a variety of ingredients such as grains, grams, nuts, milk, yogurt, and fresh herbs and flowers.
With the founding in place, Nat Habit plans to debut into offline sales via modern and general trade. “We plan to also start our own two outlets for the coming financial year. Both will be early experiments in this direction,” said Das.
In addition to its own website, Nat Habit presently markets its products on popular online platforms like Amazon and Flipkart. According to Das, approximately 55% of the total sales are attributed to direct sales through their website, while the remaining portion is generated from sales on online marketplaces.
Nat Habit has ambitious plans for growth, aiming to achieve a revenue increase of over four times to reach Rs 350 crore in annual recurring revenue within the next 24 months.
Nat Habit reported that it presently caters to almost 1.4 million customers and dispatches 15,000 units daily. A significant majority, exceeding 70% of its user base, comes from tier 1 and 2 cities. Furthermore, the brand notes a substantial 30% demand from tier 3 cities and beyond.
“Natural or ayurvedic care is not merely a trend for us; it is a lifestyle or habit we would like consumers to adopt for a safer, longer and happier life,” Das added.
Das, an alumnus of IIT-Kharagpur and INSEAD, has a background of working with Apple. On the other hand, her co-founder Agarwal, an alumnus of DCE and Darden, previously held a position with Capital One.
“Nat Habit has taken personal care to a new level by offering fresh products using proprietary techniques and natural ingredients. We are excited by their unique products that have led to immense customer love and strong retention,” Pankaj Makkar, partner, Bertlesmann, said.
“This certainly is a brand that’s here to win. Fireside will continue to support such visionary purposes and entrepreneurship,” Fireside Ventures partner Dipanjan Basu said.
