Nat Habit, a prominent player in the natural personal care segment, has successfully closed a Series B funding round, raising an impressive $10.2 million. The funding, spearheaded by Bertelsmann India Investments, signals a robust vote of confidence in Nat Habit’s growth trajectory. Existing investor Fireside Ventures, along with contributors including Amazon India Fund, Mirabilis Investment Trust, and Sharrp Ventures, also participated in this latest funding round.
Ambitious Plans for Growth
Founded in 2019, Nat Habit has swiftly emerged as a key player in the beauty and wellness categories, boasting a diverse product range, including moisturizers, hair oils, face wash, and ubtans. With the freshly injected capital, the company has outlined a multifaceted strategy for growth.
According to a statement released by Nat Habit, the funds will be allocated for various initiatives, including market expansion into new product categories, a foray into the offline retail segment, substantial investment in research and development, and a strategic drive to augment its workforce. Additionally, a portion of the funds, amounting to $2 million, is earmarked to facilitate exits for early investors, although their identities remain undisclosed.
Solid Foundation and Market Presence
Nat Habit’s success in the D2C space is underscored by its significant direct sales, which currently contribute to approximately 55% of its total sales. The brand sells its products through its own website and major e-commerce platforms such as Amazon and Flipkart. With a customer base of nearly 1.4 million and a daily shipment volume of 15,000 units, Nat Habit has established a formidable presence, particularly in tier I and II cities, where more than 70% of its user base resides.
Financial Snapshot and Future Projections
The company disclosed an Annual Recurring Revenue (ARR) of Rs 82 crore, positioning itself as a robust contender in the market. However, for the fiscal year ending March 2023 (FY23), Nat Habit reported a revenue of nearly Rs 40 crore with a corresponding loss of Rs 17.6 crore, according to startup data intelligence platform TheKredible.
Undeterred by the loss, Nat Habit is gearing up for an ambitious future. The company envisions tripling its ARR to Rs 350 crore within the next 24 months, underlining its commitment to aggressive expansion and comprehensive growth.
Strategic Positioning and Market Confidence
The successful closure of the Series B funding not only amplifies Nat Habit’s financial strength but also strategically positions the brand for future success. In a fiercely competitive D2C landscape, the infusion of capital will empower Nat Habit to innovate, diversify its product offerings, and expand its market reach both online and offline.
As the D2C sector continues to evolve, Nat Habit’s growth trajectory and strategic moves will be closely watched, with industry insiders anticipating the brand to further solidify its position as a trailblazer in the natural personal care space.
