With climate change taking central stage globally, we have witnessed a constant rise in startups innovating in the ecofriendly, sustainable products space. And with the global ‘climate financing’ perspective now covering startup investments as well, it is likely that capital raising activity in this space would see a surge.
One such capital raise in this space is being announced today. Clensta, a direct-to-consumer brand that develops and sells environment-friendly personal-care and homecare products, has raised ₹20 crore (~$USD 2.6Mn) in a fresh Series A round.
The round was led by Venture Catalysts and Inflection Point Ventures. Besides Hem Angels, part of Hem Securities Limited, N+1 Capital (RBF), the existing investors along with other marquee investors also invested in this funding round, the IIT-backed startup said in a Statement. Clensta is among those startups that has been backed by IIT-Delhi.
Founded in 2016, backed by IIT Delhi & DST, Clensta aims to develop environmentally compassionate products that benefit all. The company has over 30 products in its portfolio, and claims to have achieved 4X growth since last FY. Post commercialization and strategic tie up with Cipla for the flagship products Waterless Body Bath & Waterless Shampoo, Clensta has now developed a new category of Homecare products based on EBDC Technology.
Talking about the company’s long term plans and current fundraise, Clensta founder Puneet Gupta says, “By ensuring that we need to be a little smart for the smarter customers, the brand has charted a growth path unlike any other in the segment and came up with a super cleanser with smart concentrates wherein you can make your own super cleanser with just the tap water. Also, it’s easy on your pockets as there is no charge for 90% of water content in a ready solution.”
The funds raised will be used to scale up the company’s sales, ramp up brand marketing and expand Clensta’s online and offline presence across India. The brand claims to have achieved a CAGR of over 130% and aims to be a ₹1000 crore business in the next 5 years.