Scentials Secures Rs 34.6 Crore in Mixed Funding Round Led by Indus Way Emerging Market Fund

Scentials, a D2C wellness startup, has raised Rs 34.6 crore (approximately $4 million) in a combination of debt and equity financing. The round was led by Indus Way Emerging Market Fund, with participation from existing investor TIW Private Equity.

According to regulatory filings with the Registrar of Companies, the Mumbai-based company's board has approved the issuance of 89,200 Series A1 CCPS and 18,59,000 optionally convertible debentures. Indus Way Emerging Market Fund contributed Rs 32 crore to the round, while TIW Private Equity invested Rs 2.6 crore.

The fresh capital will be utilized to meet growth objectives and strengthen the company's financial position, as stated in the filings. This funding marks Scentials' first capital raise in four years, bringing its total funding to approximately $10 million, including a $6 million round led by TIW Private Equity in 2021.

Founded in 2017, Scentials specializes in designing, developing, manufacturing, and distributing celebrity-backed brands across various personal care categories, including deodorants, fragrances, and skincare products.

The funding comes at a crucial time for the company, which faced challenges in FY23. Financial records show that Scentials experienced a 20.5% year-on-year revenue decline, dropping to Rs 18.22 crore from Rs 22.92 crore the previous year. The company also reported a loss of Rs 38.46 crore in FY23, and its FY24 financial results have yet to be disclosed.