D2C wellness startup Scentials has secured Rs. 34.6 crore (approximately $4 million) through a mix of debt and equity, led by Indus Way Emerging Market Fund, with participation from TIW Private Equity.

As per regulatory filings accessed from the Registrar of Companies, the company’s board approved a special resolution to issue 89,200 Series A1 CCPS and 18,59,000 optionally convertible debentures to raise the funds.

Indus Way Emerging Market Fund contributed Rs. 32 crore, while TIW Private Equity invested Rs. 2.6 crore. The capital will be used to support growth objectives and strengthen the company’s financial position.

This marks Scentials’ first funding round in four years. To date, the Mumbai-based company has raised around $10 million, including $6 million in 2021, which was also led by TIW Private Equity.

Founded in 2017, Scentials focuses on designing, developing, manufacturing, and distributing products under multiple celebrity-backed brands in deodorants, fragrances, and skincare.

The company has not yet disclosed its financial results for FY24. However, in FY23, Scentials recorded a revenue decline of 20.5% year-on-year, with its scale dropping to Rs. 18.22 crore from Rs. 22.92 crore in the previous year. Additionally, it reported a loss of Rs. 38.46 crore in FY23.

The latest funding is expected to help Scentials stabilize operations and drive expansion efforts as it navigates challenges in the highly competitive D2C wellness market.