E-commerce

Clensta and the double-edged sword of offline expansion

Pranav Balakrishnan

July 16, 2024 | 10 Min Read

Despite doubling its revenue in consecutive years, Parineeti Chopra-backed personal care brand Clensta is currently in a bind. Its offline-first strategy has left it with only six months of runway left and its attempt to woo strategic investors has been an uphill struggle.

Key Takeaways

Following a slowdown in e-commerce and the increased cost of selling online, D2C brands are increasingly going offline
Parineeti Chopra-backed Clensta, though, is seeing first-hand how difficult this approach can be
The brand, which claims that 60% of its revenue comes from offline channels, has only around six months of runway left
While the company claims to have offers for funding on the table, it has failed in its attempts to woo strategic investors who aren’t convinced by its offline-first approach

If online direct-to-consumer (D2C) brands were the flavour of the season during the pandemic, the post-Covid e-commerce slowdown coupled with the increased cost of selling online has seen the narrative shift markedly.

For D2C brands that made their names and fortunes selling either through their websites or digital marketplaces, the buzzword on everyone’s lips is omnichannel—selling both online and offline.

Investors, meanwhile, are increasingly backing D2C brands with a strong offline presence. Peak XV has invested in luggage maker Mokobara, while the likes of men’s fashion brand Snitch and beauty and personal care (BPC) brand The Ayurveda Experience have also raised millions of dollars from blue chip investors.

Clensta was meant to be another offline-first D2C success story. The BPC brand, which has raised a total of $13 million from the likes of actor Parineeti Chopra, the UAE royal family, and a slew of other venture backers, has been publicly bullish about its fortunes. It has claimed in recent months that it has crossed an annual revenue runrate (ARR) of Rs 100 crore, forecasting that it would cross an ARR of Rs 1,000 crore in the next three years.

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