Ashish Mishra, also the CBO at Clensta, is planning to launch his own venture in the beauty space
Mishra told Inc42 that he stepped down as the company started exploring a possible acquisition deal amid a cash crunch and this did not align with his long-term goals
The cofounder said that his decision to quit the company was communicated in October 2024, but he stayed on to wrap up issues related to pending salaries of employees
Clensta
Mishra told Inc42 he is moving away from Clensta but will be soon launching a separate venture in the beauty and personal care space in partnership with other HNIs and founders.
“I stepped down from my role at Clensta in October 2024. The decision came after we started exploring a possible acquisition for Clensta as this did not align with my long-term goals,” Mishra said.
The cofounder further said that his decision to quit the company was communicated in October 2024, but he stayed on to wrap up issues related to pending salaries of employees.
According to an email sent by Mishra to Clensta employees in October, the management was in talks with investors and lenders to figure out an immediate solution to pay the pending salaries.
Mishra added that the management was expected to submit a plan to the investors after which some funds could have been released for payments to logistic partners as well as employees.
How The Clensta Story Soured
Mishra was incidentally brought on board from Mamaearth parent Honasa, where he was heading the company’s offline business and international expansion. At Clensta, Mishra was elevated to the position of cofounder and was tasked with transitioning the company towards a retail-first strategy.
But the stiff competition in the BPC space meant that Clensta had to stay ahead of the curve on innovation. By all indications, the company’s products did not meet the new-age standards, as indicated by their weak presence in relevant channels such as quick commerce.
The D2C beauty and skincare startup has raised $12 Mn since inception in 2016, and counts Parineeti Chopra, Keiretsu Capital, Indian Angel Network, Inflexion Point Ventures, Venture Catalyst among others as investors. Clensta’s last fundraise was a $9 Mn Series B round in July 2023.
But just over one year later after this infusion, the company hit the growth wall, similar to other D2C companies such as Melorra and TagZ Foods in recent times.
Sources told Inc42 about discontent within the ranks at Clensta in August 2024, when salary payments were first halted. Current and former employees allege that Clensta’s cash flow condition has worsened in the past year, as the company was unable to move inventory quickly enough to earn revenue.
“Both the management and finance department are responsible for the current mess as the audit inventory could not be carried out in due time which has also raised doubts among potential investors,” one of the sources told us in October last year
Other sources added that cofounder Puneet Gupta had informed employees at the time that they might need to look for other jobs soon unless there is an infusion.
However, a Clensta spokesperson told Inc42 that the company is in the process of raising an equity and debt round “from some of the world’s largest investors”.
The spokesperson also claimed that a ‘Big Four’ audit firm has been roped in by the incoming investors for financial due diligence. But two months down the line, any possible talks with investors seem to have fallen through as indicated by Mishra’s resignation and its stated reason.