Nat Habit Secures $10.2M in Series B Funding Led by Bertelsmann, Plans Strategic Expansion

Nat Habit, the direct-to-consumer (D2C) beauty and wellness products startup, has successfully raised $10.2 million in a Series B funding round led by Bertelsmann India Investments (BII). Existing investor Fireside Ventures participated, along with contributions from Amazon India Fund, Mirabilis Investment Trust, and Sharrp Ventures. The startup intends to utilize the capital for research and development, product innovation, brand enhancement, offline expansion, and talent acquisition.

Approximately $2 million of the funding has been earmarked to facilitate an exit for early-stage investors, promising substantial returns of nearly 4.5 to 5 times their initial investment over a four-year period, according to a statement from Nat Habit. In its Series A round last year, the startup had secured $4 million, led by Fireside Ventures and Peak XV Partners.

Nat Habit, founded in 2019 by Swagatika Das and Gaurav Agarwal, boasts an annual recurring revenue (ARR) of Rs 82 crore and has set an ambitious target of achieving over 4x growth to Rs 350 crore ARR within the next 24 months. Serving nearly 14 lakh customers and dispatching 15,000 units daily, the startup reports that over 70% of its users hail from Tier 1 & 2 cities.

Swagatika Das, co-founder of Nat Habit, emphasized the brand's commitment to natural and ayurvedic care as a lifestyle choice. She stated, "With the recent Series B funding, we aim to double down on our efforts in terms of building a stronger community and making larger strides towards making Nat Habit the go-to brand for every Indian’s daily personal care needs."

Nat Habit distinguishes itself by creating proprietary formulations from fresh ingredients such as raw milk, fruits, and herbs. Pankaj Makkar, Partner at Bertelsmann, commended Nat Habit for elevating personal care with unique products that have garnered strong customer love and retention.

Looking ahead, Nat Habit plans to expand its product portfolio, which currently includes moisturizer, hair oil, facewash, and more, along with venturing into offline channels over the next 24 months. The Indian beauty and personal care market, projected to grow at a compounded annual growth rate of 10%, is set to reach $30 million by 2027, as per a report by Redseer Strategy Consultants in collaboration with Peak XV. With India's per capita spends in the beauty and personal care market at $14, compared to $313 in the US and $38 in China, Nat Habit aims to capitalize on this growth potential with its unique and natural product offerings.