Beauty and wellness startup Nathabit raises $10.2 Mn in series B round led by Bertelsmann

Beauty and Wellness startup Nat Habit has raised $10.2 million in a Series B round led by Bertelsmann India Investments. The round also saw participation of  existing investor Fireside Ventures, along with other investors including Amazon India Fund, Mirabilis Investment Trust and Sharp Ventures.

 Earlier, the startup secured $4 million as part of its Series A round in April 2022. Nat Habit will channelize the fresh capital  strategically for growth and expansion into new categories, launching into offline segments, research and development and acquisition of talents,the company said in a statement.

 According to the D2C brand, it will use  around $2 million to execute exits to early investors including Surge Ventures, Titan Capital, Whiteboard Capital and a host of angel investors such as Neeraj Kakkar, Devendra Chawla, and Suhasini Sampath , promising significant return of approximately 4.5-5 times their initial investments over a four year of period.

Founded  by Swagatika das and Gaurav Agarwal  in 2019, Nat Habit has been doing pioneering work on the organic beauty and wellness categories with a range of  products such as moisturisers, hair oils, facewash, and ubtans. The brand is gaining popularity for its unique formulation ,using ‘proprietary techniques’  to blend natural and fresh ingredients such as milk, fruits, herbs.

Nat Habit sells its product through its own website and e-commerce platforms including Amazon and Flipkart. The company claims that its direct sales comprise over 55% more than the total sale.

The Delhi-based startup currently caters to nearly 1.4 million customers and delivers 15,000 units per day. As per report, more than 70% of its user base are mainly concentrated in tier l and tier ll cities.

 As of now, the startup claimed an annual recurring revenue (ARR) of Rs 82 crore and is aiming over 4 times growth to Rs 350 crore ARR in the next two years.

Stressing upon the commitment of making Nathabit the go-to brands for every Indian’s personal care, Das shared that natural or ayurvedic care is not a mere trend for them rather a lifestyle choice for the customers to adopt for a healthier, happier, safer life.

Pankaj Makkar, Partner, Bertelsmann. also expressed his confidence about the brand’s positive response towards customer experiences and strong retention.

However, The Indian beauty and personal care market is supposed to grow at an exponential  annual growth rate of 10 per cent to $30 million by 2027 from $19 billion (about $58 per person in the US) in 2022, as per a report  published by Redseer Strategy Consultants.