D2C(direct-to-consumer) beauty and wellness products startup Nat Habit on Tuesday announced $10.2 million series B funding led by Bertelsmann India Investments (BII). The round also saw participation from existing investor Fireside Ventures along with other investors includingAmazon India Fund, Mirabilis Investment Trust,andSharrp Ventures.The startup said it will deploy the capital towards research and development, product development, brand building, offline expansion and hiring.

Around $2 million from the funding will also be used to provide an exit to early-stage investors, promising significant returns of nearly 4.5 to 5 times their initial investment over a four-year period, Nat Habit said in a statement. It had raised $4 million in its Series A round last year led by Fireside Ventures other than Peak XV Partners.

Founded in 2019 by Swagatika Das, an IIT Kharagpur, INSEAD & Apple alumnus andGaurav Agarwal, a DCE, Darden & Capital One alumnus, Nat Habit said it serves nearly 14 lakh customers and ships 15,000 units per day with over 70 per cent of its users coming from Tier 1 & 2 cities.

Commenting on the deal, Swagatika Das said,“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.”

NatHabit said it creates proprietary formulations out of fresh ingredients such as raw milk, fruits & herbs.

“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,” said Pankaj Makkar, Partner, Bertelsmann.

Over the next 24 months, Nat Habit said it is aiming to expand its product portfolio which currently includes moisturizer, hair oil, facewash, and more apart from channel expansion into offline.

The Indian beauty and personal care market is likely to grow at a compounded 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 by consultancy firm Redseer Strategy Consultants in Collaboration with Peak XV.India’s per capita spends in the beauty and personal care market was $14 in comparison to $313 in the US and $38 in China.

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