Parineeti Chopra-backed Clensta in talks to raise $10 million from Amazon, others

Clensta founder Puneet Gupta and backer Parineeti Chopra.

Personal-care brand Clensta, backed by actor Parineeti Chopra, is in advanced talks to raise $10 million (around Rs 83 crore) in a Series B funding round, with Amazon expected to join as a new investor, people aware of the development told Moneycontrol.

While existing backer TradeCred is likely to lead the round, Arrow Capital and Singapore-based Jafco Asia are also expected to participate. The final terms of the deal are still being negotiated.

Clensta co-founder Puneet Gupta confirmed talks were on but didn’t share the details.

“We are in advanced discussions with several global venture capital firms. Due to confidentiality clauses, I’m unable to disclose the identities of all investors at this stage. However, I can confirm that there are significant players involved,” Gupta said in an emailed response to Moneycontrol.

The latest round comes nearly a year after Clensta raised Rs 75 crore ($9 million) in a mix of debt and equity led by TradeCred, an alternative debt financing firm, and UAE’s royal family.

Since its inception in 2016, the firm has raised approximately Rs 105 crore ($12 million) and counts IAN, Inflexion Point Ventures, Venture Catalysts, Exim Bank and Hem Securities among its backers, in addition to IIT-Delhi.

Amazon in the mix

US technology giant Amazon’s potential investment in Clensta will come through its $250 million early-stage tech fund — SMBhav Venture Fund — launched in 2021 to support Small and Medium Businesses (SMBs). Initially focused on SMBs, the fund has since expanded to include direct-to-consumer (D2C) brands, fintech and gaming sectors.

Some of its investments include startups like Acko, Cashify, Fitterfly and Axio. In the D2C space, its portfolio includes brands such as GoodGlam Group, FreshToHome, XYXX, Hopscotch, Innovist, and Fix My Curls.

Gupta confirmed that Amazon was part of the group they were negotiating with but added the structure of the deal and the lead investor role was still being finalised.

“The Series B round is targeted around $10 million, though this figure may vary slightly as we continue discussions with potential investors,” he said.

The co-founder also hinted at a potential secondaries component in the upcoming round.

The new funding is set to fuel Clensta's omni-channel strategy, with focus on boosting its offline presence. The money would also be directed toward scaling domestic and international operations, expanding product lines and deepening retail partnerships, Gupta said.

Also read: There are not enough consumer brands, we’ve only seen the tip of the iceberg: Accel’s Prashanth Prakash and Fireside Ventures’ Kanwaljit Singh

The company roped in Ashish Mishra, former senior vice president at Mamaearth, as a co-founder in September 2023 to drive its international expansion and institutional sales.

“Ashish joined Clensta as co-founder last year before the Mamaearth IPO. Under his leadership, our offline expansion strategy has accelerated significantly, and he’s been driving growth initiatives across key channels,” Gupta said.

Clensta, known for its waterless shampoo and waterless body bath products, has a portfolio of around 70 products with over 80 SKUs.

These products are developed at IIT-Delhi, using patented technologies like STAR (Safe Transdermal Absorption of Reactive ingredients), which aims to improve the efficacy of personal-care items. The brand owns five technologies and patents under its name.

According to the firm, the brand reported Rs 78 crore in revenue for FY24, marking a 129 percent year-on-year growth from Rs 34 crore in FY23.

Clensta is targeting an annual recurring revenue (ARR) of Rs 300 crore by the end of the current financial year, which translates to a monthly recurring revenue of Rs 25 crore.

Salary delays and clarifications

Despite the company’s growth, Clensta has been facing challenges, including delays in payments to employees and vendors. The prolonged process of closing the funding round, which the firm has been working on since January, has compounded the financial strain.

Several employees have alleged delays in salary payments for August and September. Addressing these concerns, Gupta said the delay was tied to new key performance indicators (KPIs), linking salaries with sales performance.

“There has been a slight delay in August and September salaries due to adjustments tied to new KPIs, linking salaries with sales performance. Salaries are set to be disbursed by the 10th (October). We are committed to resolving this,” the co-founder said.