D2C enabler Smytten raises INR 100 crore in Pre-Series B funding led by Fireside Ventures and Roots Ventures alongside participation from Sharrp Ventures, Waao Partners, Survam Partners, and Sattva Group Family Office.
The undisclosed valuation of the company, with this funding, has doubled. This is the third investment of an e-commerce enabler within a week of GoKwik and Shopflo raising its seed from Tiger Global and others, signalling the booming of this segment post-pandemic.
The brand’s fresh funds will be used primarily to build industry-first tech and data solutions with advanced Artificial Intelligence (AI) and Machine Learning (ML) to optimize the marketing funnel for D2C brands — starting from new product development to consumer acquisition and retention.
The startup also plans to focus on hiring in areas like supply chain, marketing, and analysis, and accelerate growth to Rs 500 crore ARR (Annual Recurring Revenue) by FY23. Smytten plans to invest heavily to create a best-in-class servicing infrastructure in the country to widen the product trial touch points and strengthen the online service delivery to better the pre-purchase buying experience for consumers at scale.
Smytten was founded in 2015 by ex-Unilever and Google executives Siddhartha Nangia and Swagata Sarangi, respectively. So far, the startup has raised more than $20 million in institutional funding. The company primarily focuses on direct-to-consumer brands, and its clientele includes Mamaearth, Plum, mCaffeine, WOW Skin, and Maybelline.
Siddhartha Nangia, Co-founder of Smytten, said,
“We are looking at a significant growth and push this year. The funding we have raised will be used for five different business growth aspects. One is the significant growth of technology and infrastructure. Currently, B2B brands in the D2C segment have seen significant growth, and we want to continue onboarding one to our partners every day.”
He explained the team is also looking at better consumer acquisition; they already have 10 million consumers and aim to add over 10 million more — totalling over 20 million.
He added, “We are looking at the HENRY (High Earning, Not Reached Yet), a segment of consumers. These are between the age of 27 to 38 years and have an average income of Rs 8 lakh to Rs 10 lakh per annum. Currently, we have more
than 10 million users as our consumer base and have more than 900 Brand Partners who we work with. We are a female dominant platform with over 70% females, however, with the new categories we will be expanding into, we want to attract more men as users. Try before you buy, is not specific to women.”
Japan Vyas, Managing Partner at Roots Ventures, said,
“Smytten has grown more than 12X by revenue since the time we invested. We have participated in every round of fundraising they had and will continue to back them in the future with even stronger conviction. We are very confident that Smytten is going to be a very large, profitable, and fundamentally strong business in the consumer-tech space globally.”
Over the past few months, several D2C brands are seeing flattening growth, and experts are anticipating some consolidations this year.