Nat Habit, a direct-to-consumer (D2C) company specializing in natural personal care products, has secured $10.2 million in a Series B funding round. Bertelsmann India Investments took the lead in the investment, with contributions from existing investor Fireside Ventures, as well as Amazon India Fund, Mirabilis Investment Trust, Sharrp Ventures, and other participants.

Following its $4 million Series A round in April 2022, Nat Habit has successfully raised $10.2 million in a Series B funding round. The funds obtained in the Series B round will be allocated towards several growth initiatives, such as venturing into new product categories, making a foray into the offline market segment, conducting research and development activities, and recruiting talent. according to a statement by the company.

Nat Habit also revealed plans to allocate $2 million to provide exits to early investors without disclosing specific investor names. Early backers of the startup include Surge Ventures, Titan Capital, Whiteboard Capital, and angel investors like Neeraj Kakkar, Devendra Chawla, and Suhasini Sampath. Established in 2019, Nat Habit focuses on the beauty and wellness sectors, offering products such as moisturizers, hair oils, facewash, and ubtans. The company distributes its products through its official website and popular e-commerce platforms like Amazon and Flipkart. Notably, direct sales constitute approximately 55% of Nat Habit’s total sales.

Nat Habit boasts a customer base approaching 1.4 million and processes daily shipments of 15,000 units. The company underscores its extensive presence in tier I and II cities, constituting more than 70% of its user base. As disclosed by the company, it is presently achieving an Annual Recurring Revenue (ARR) of Rs 82 crore.

In the fiscal year ending in March 2023 (FY23), Nat Habit reported revenue close to Rs 40 crore. However, according to startup data intelligence platform TheKredible, the company incurred a loss of Rs 17.6 crore during the same period. Despite this, Nat Habit has ambitious plans for the future, outlining strategies for expansion and overall growth, with the target of reaching an Annual Recurring Revenue (ARR) of Rs 350 crore within the next 24 months.