Clensta International Pvt Ltd, a direct-to-consumer (D2C) and home care products startup, has raised over Rs 20 crore ($2.64 million) in a Series A funding round from Hem Angel - part of Hem Securities Limited, Venture Catalysts and Inflection Point Ventures. N+1 Capital participated in the round, the company said in a statement on Thursday.
Clensta plans to use the funds to increase its sales, ramp up brand marketing efforts and expand its online and offline presence across India.
Founded in 2016 by Puneet Gupta, Clensta began with products based on waterless technology (waterless body bath and shampoo) to enable bathing without the use of water. In 2018, Clensta raised an undisclosed amount in seed funding from Indian Angel Network (IAN) and its eponymous venture capital fund.
"Keeping in the mind the Indian Home Care market size of $6.2 billion, we have adopted an omni-channel strategy to ensure Clensta’s presence in offline as well as online markets. In this light, this funding comes as an affirmation that we continue to lead in the right path," said Gupta.
According to the statement, the company has registered 20x growth in five years. The brand has achieved a compound annual growth rate of over 130% and aims to earn Rs 1000 crore revenues in the next 5 years, it added.
The Direct-to-consumer (D2C) sector has seen continued interest among investors in India. Recently, D2C skincare brand Foxtale raised Rs 5.5 crore ($730,200) in its seed funding round ahead of its entry into the market. Last month, Sleepy Owl Coffee Pvt. Ltd, which owns a ready-to-drink coffee brand, raised $6.5 million (around Rs 49 crore) in a Series A funding round from existing investors Rukam Capital and DSG Consumer Partners.
In October, Good Roots Kitchenware Pvt Ltd which runs The Indus Valley, D2C health-focused kitchenware startup, raised $1.1 million (Rs 8.14 crore) in a financing round from Rukam Capital, DSG Consumer Partners (DSGCP), and The Chennai Angels.