SUMMARY
The round also saw participation from Sharrp Ventures, Waao Partners, Survam Partners, and Sattva Group Family Office
The fresh capital will be used for brand building, hiring engineering talent, building technology infrastructure and expanding teams across various verticals
With the latest funding round, many of its early investors exited the startup with nearly 15X return on investment, founder Sarangi said
D2C sampling platform smytten
has raised INR 100 Cr in a pre-Series B funding round led by Fireside Ventures and Roots Ventures.
The funding round also saw participation from Sharrp Ventures, Waao Partners, Survam Partners, and Sattva Group Family Office.
Smytten will use the fresh capital for brand building, hiring engineering talent, building technology infrastructure and expanding teams across various verticals.
Founded in early 2016 by former Unilever and Google executives Siddhartha Nangia and Swagat Sarangi, Smytten offers an online sampling platform where all types of direct-to-consumer (D2C) brands can list themselves and sell their products to a wider audience. Consumers can buy sample products from its app-based platform at a marginal cost and make better buying decisions.
With the latest funding round, many of the early investors exited the startup with nearly 15X return on investment, Sarangi said. Smytten also doubled its valuation in the round from its last funding round held in August 2021, he added, without disclosing its current valuation.
Smytten offers products under 12 categories, including skincare, bath and body care, food and beverages, makeup, fragrances, heath and wellness, stationery and pet food.
The D2C sampling platform is looking to become a one-stop solution for all lifestyle products. Sharing its future plans, Sarangi said, “There is a huge scope to further deep down in the current categories that we have. Besides, we want to invest in the audio and home automation segments.”
Smytten offers its partner D2C brands a range of services, including data and insights on product development and channel expansion. “The startup contributes in giving the right information to the brand and also helps them in their growth from a sales perspective on our website as well as on other platforms,” Sarangi added.
Smytten has raised $20 Mn in funding to date. It counts angel investor Rajan Anandan, ex-MD of Google India and South East Asia, and many other industry veterans among its early backers.
In August last year, Smytten raised $6 Mn in its Series A funding round led by FireSide Ventures. The round also saw participation from Sharrp Ventures, the family office of Harsh Mariwala; Survam Partners, the family office of Hero Group’s Suman Kant Munjal; and Waao Partners, the family office of serial entrepreneur Pratul Shroff and Roots Ventures.
In 2019, it raised $1.5 Mn from Root Ventures.
Smytten claims to host over 900 brands on its platform across lifestyle categories. Mamaearth, Plum, mCaffeine, WOW Skin, Maybelline, Man Matters, Bodywise, and The Man Company are among some of the D2C brands present on its platform.
As per an Inc42 report, India’s D2C market was pegged at $1,200 Bn in 2021 and comprised over 800 brands. The industry is estimated to touch $1,760 Bn by 2026.
Nykaa, Plum, MyGlamm, HealthKart, Sugar and LensKart are among some of the prominent players in the immensely competitive D2C sector.
Commenting on the D2C market, Sarangi said that consolidation of D2C brands is likely in the coming years as it would be difficult for all of them to survive in the same space.
Smytten claims to have 10 Mn consumers, of which 70% are females and 30% are males.
The startup claims to have a monthly recurring revenue (MRR) of INR 150 Cr, and is aiming for INR 500 Cr in MRR by the end of the year.
