A lot of money is made by investors in direct-to-consumer fragrance companies
Early signs are emerging that India’s direct-to-consumer fragrance and deodorant segment is attracting investor interest, with several young brands in talks to raise fresh funds. DSG Consumer Partners is discussing an investment of ₹18–20 crore in Phitku, which sells alum-based underarm roll-ons and generates monthly sales of ₹1.5–2 crore. Verlinvest-backed V3 Ventures is also negotiating a ₹20–25 crore investment in Fraganote, which posts ₹2–2.5 crore in monthly revenue.
Founders and investors say the growing demand from Gen Z consumers and a premiumisation trend are driving this interest, as shoppers shift from deodorant sprays to perfumes. Investors see a gap in the mid-premium range, especially products priced between ₹1,500 and ₹4,000 for a 100 ml pack. According to Fireside Ventures partner Adarsh Menon, fragrances are likely to become one of the fastest-growing segments in beauty and personal care, with Indian consumers directly moving from deodorants to stronger, longer-lasting Eau de Parfum (EDP) instead of following the usual global progression.
Perfumes are classified based on fragrance oil concentration, with EDP offering the longest-lasting scent. At the same time, newer formats like roll-ons are gaining popularity over aerosol sprays. Fraganote declined to comment on funding discussions, while V3 Ventures, Phitku and DSG Consumer Partners did not respond to queries. Fraganote had earlier raised ₹8.5 crore from Rukam Capital.
Other brands are also attracting investors. Actor Samantha Ruth Prabhu’s perfume brand Secret Alchemist recently raised ₹20–25 crore from Unilever Ventures and DSG Consumer Partners, while Indore-based House of EM5 secured angel investment from Aman Gupta and cricketer Suryakumar Yadav.
Investors say rising awareness about the potential harm of aerosol sprays and higher spending power are pushing consumers toward premium fragrances. Many customers are now willing to spend ₹2,000–3,000 or more on perfumes. Beauty retailer Nykaa has launched dedicated fragrance stores to tap into this demand and increase consumer awareness.
Industry estimates peg India’s deodorant market at around ₹6,000 crore, similar in size to perfumes. The perfume segment, valued at ₹4,000 crore in 2022, is expected to double to ₹8,000 crore by 2027. While private equity firms have invested in established players like Vini Cosmetics and Bellavita, venture investors are now starting to back emerging D2C brands that are experimenting with artisanal, clean-label and premium offerings. Experts believe the biggest opportunity lies in the mid-priced segment, where meaningful new brands can be built.
