Nat Habit, a leading natural personal care direct-to-consumer (D2C) brand, has successfully raised $10.2 million in its Series B funding round. The funding was led by Bertelsmann India Investments (BII) and featured participation from Fireside Ventures, Amazon India Fund, Mirabilis Investment Trust, and Sharrp Ventures, among others.
The primary allocation of the funds will be directed towards research and development, product development, brand enhancement, offline expansion, and the recruitment of new talent.
Additionally, a portion of the capital, approximately $2 million, will be used to facilitate the exit of early-stage investors, offering them a substantial return on their investments, equivalent to 5X returns in just four years.
Founded by Swagatika Das and Gaurav Agarwal, Nat Habit has achieved annual recurring revenues of Rs 82 crore.
The company intends to leverage this latest funding to foster growth and venture into new product categories, retail expansion, research and development, and talent acquisition. Notably, Nat Habit is known for manufacturing all of its products, totaling approximately 200 stock keeping units (SKUs), in-house.
Nat Habit’s product line includes a range of natural personal care items, such as moisturizers, hair oils, facewash, ubtans, henna, and lip scrubs, all crafted from ingredients like grains, grams, nuts, milk, yogurt, and fresh herbs and flowers.
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With a solid foundation in place, Nat Habit plans to make its foray into offline sales through modern and general trade channels. Swagatika Das, one of the founders, commented, “We plan to also start our own two outlets for the coming financial year. Both will be early experiments in this direction.”
In addition to its official website, Nat Habit also sells its products on popular online marketplaces like Amazon and Flipkart. Direct sales account for approximately 55% of the total sales, with the remaining revenue generated from online marketplaces.
Founder Swagatika Das expressed her gratitude, saying, “Over the years, we have witnessed great support from our investors who have helped us in our journey of delivering high-quality, sustainable, and truly natural personal care products. 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.”
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Pankaj Makkar, Partner at Bertelsmann, shared his enthusiasm, stating, “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. This investment is a sign of our confidence in Nat Habit’s potential and our relationship with its founders. We’re excited about a future filled with mutual success and ongoing teamwork.”
Nat Habit has ambitious plans for the future, aiming to achieve more than fourfold growth in revenue, targeting Rs 350 crore in annual recurring revenue over the next 24 months.
