New Delhi, December 12, 2023: Nat Habit, a pioneering D2C natural beauty and wellness brand has raised $10.2Mn in series B funding led by Bertelsmann India Investments (BII). The round also saw participation from existing investor Fireside Ventures along with other investors including Amazon India Fund, Mirabilis Investment Trust, and Sharrp Ventures. Born out of the founder’s (Swagatika Das) personal commitment towards holistic wellness Nat Habit remains steadfastly committed to its ‘100% Natural Care’ mission. The company is currently clocking an ARR of 82Cr. It plans to allocate the funds strategically to propel growth and expansion (new categories, retail, R&D, and talent). With this strategy, Nat Habit eyes a 4X+ growth in the $30Bn beauty and personal care market to land at 350Cr ARR in the next 24 months.
Commenting on the announcement, Founder Swagatika Das said, ‘’Nat Habit was founded with a vision to make true & wholesome natural care available to all. We have been doing that with Fresh products from our Ayurvedic Kitchen. 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. 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. 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.’’
Commenting on the fund raise Pankaj Makkar, Partner Bertlesmann said, “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.”
Speaking on the investment Fireside Ventures Partner, Dipanjan Basu said, “India’s beauty & personal care market is on a steep growth trajectory with multiple emerging needs and gaps of consumers. We are extremely impressed with what Nat Habit is trying to achieve in this market, with its disruptive products & strong commitment to goodness. This certainly is a brand that’s here to win. Fireside will continue to support such visionary purposes & entrepreneurship – it also strongly aligns with our fund’s purpose of building responsible brands that do good for the environment and people.”
The Industry and Business Model:
Over the last 5-6 years the BPC industry in India has seen a significant shift towards clean and natural ingredients owing to the increasing consumer awareness and demand. According to Statista, India’s Natural Cosmetics market is projected to generate a revenue of INR US $0.90bn by 2023 and is anticipated to experience an annual growth rate of 3.52% (CAGR 2023-2028). This in turn, has given rise to homegrown clean ingredients-led brands like Nat Habit that are committed to making fresh, 100% natural personal care products more accessible to consumers across the country.
Since its inception in 2019, Nat Habit has been committed to making true natural personal care accessible to every Indian household. With a strong R&D backing, NatHabit creates proprietary formulations out of fresh ingredients such as raw milk, fruits & herbs. The products are made and shipped fresh daily, straight from its ayurvedic kitchen. Nat Habit beats all levels of natural. It is one of the rarest brands to serve NOT just natural but 100% natural personal care. Strong founder commitment, own R&D & own manufacturing allows for such high quality servings. This in return breaks the clutter of BPC and brings immense brand love and cheer from users. Nat Habit today serves nearly 14 lakh customers, ships 15,000 units per day, and has 35 product lines. More than 70% of its users hail from Tier 1 & Tier 2 cities while the brand sees a good 30% demand from Tier 3 cities and beyond.
Next Steps:
Over the next 24 months, Nat Habit envisions to expand its product portfolio which currently includes Malais (moisturisers), Hair Oils, Facewash, Ubtans and more. There will be channel expansion into offline and a substantial focus on creating more brand awareness. Additionally approximately 2mn USD will be used to give exit to angels and very early stage investors – nearly 4.5 to 5X returns over 4yrs.
Past Funding:
In 2022, Nat Habit successfully secured $4 million in its Series A round, spearheaded by Fireside Ventures, renowned for its focus on consumer brands. It also has Peak XV Partners as an investor. Past funding has helped the brand grow more than 4X in revenue, improve its reach in marketplaces, invest in R&D and expand its portfolio of products in the last 2 years.
