''We are targeting 150% growth next year'': Clensta's Puneet Gupta on Pioneering Waterless Products and AI Technology in Personal Care

On the third floor of Vatika Tower B in Sector 54 of Gurugram, overlooking a busy Golf Course Road, a dedicated team of over 300 Clensta(rs) is diligently shaping the future of personal care. Their ambitious target? A GMV of Rs 400 crores next year for some of the most thoroughly researched and scientifically-backed solutions across skincare, health and hygiene that cost a cut above the average market price. ''The average shampoo or face wash must be softer on the pocket but good luck finding results other than the basic cleansing they account for'', asserts Puneet Gupta, the 38-year old CEO and founder of Clensta that recently secured Parineeti Chopra as its latest investor.

"It's not easy to work in a hybrid environment,'' he adds, working to the hum of the coffee machine and productivity all around. ''Your growth is closely tied to your interactions with others. When you isolate yourself in silos, it's easy to assume that your approach is the best one, potentially hindering your ability to discover a better way." His company's latest campaign, also called The Better Way, emphasizes making informed choices in hygiene practices.

From a single bath product seven years ago, Clensta—that has garnered $12.7M in funding till date—sold Rs 100 crore worth of product last year. It saw its net revenue grow 100 per cent in FY24 Q1.

"Without planning, nothing can happen. Your 'why' has to be clear—why you have to do it," adds Gupta who is a defence enthusiast and essentially built waterless shampoo to serve the forces. ''I started with the fundamental idea of water conservation in mind. Clensta is an abbreviation of 'clean instantly.' I deliberately avoided a typical English dictionary name. My aim was to create a brand name with zero search results online, so that every subsequent click would be the organic traffic we build over time.'' And the original idea still underlines their present trajectory. Their latest campaign 'Buy 1, Give 1' provides clean drinking water to those in need with each Clensta product purchase.

Though Puneet now plans on building loyalty in personal care through science. "We bring differentiation in terms of our formulations. Everything is conceptualized and created at IIT Delhi.''

Competing with industry players like Pilgrim, Mamaearth, MCaffeine, and WOW Skin Science, Clensta is not just another player manufacturing products. ''We keep introducing new concepts but they still work. It's because we incorporate ingredients in the right constitution for optimal results. Other brands might have this notion that the country is large and there is always another customer. But when you look at their product return percentages and repurchase numbers, you get the real picture about their product quality."

I mention some Amazon reviews that reject their waterless shampoo for feeling too sticky.

"Every time we roll out a new idea, our biggest challenge isn't launching the concept but effectively explaining it to the customer."

Regardless of the psychological shift some of his products might be ushering in hygiene practices, he is laser-focused on delivering innovation; it is the only force, he is convinced, that will disrupt the $16.8 bn Indian beauty and personal care market.

His company markets more than 500 products across multiple care categories and each has a USP centered on science.

''We are building an AI tool that will change how you track your hair and skin health. It will not only measure your skin quality and give you a skin score but also record every tiny detail and guide you on how to level up your skincare routine. With this, we are trying to rebuild that trust the customer deserves in the beauty products they choose."

Revenue at Caspian-backed company last year was an estimated $2.4 million.

But success hasn't come without surprises along the way. "We initially underestimated the importance of packaging. People really appreciate good packaging. Loyalty isn't easy to come by in this field, but I wanted to change that by blending science and beauty. So, we went all in on a rebranding mission, tweaking everything from our logo to color choices. Our logo transformed from a big "C" to a small "c" to keep up with Gen Z and millennial vibes. We also paid close attention to how our products are presented. Now, when you check out the Clensta range, you'll see a consistent look and feel. We even said goodbye to older products with outdated packaging and unclear category formats. We delved into consumer preferences, figuring out what really matters to them when they choose a product. Our solutions aren't just about results; they're also about looking good and providing an enjoyable product experience," Puneet explains as he reaches out for a Clensta pack and pops in a gummy.

He is full of gamechanging ideas. "In India, 50 per cent of the female population has iron and hemoglobin deficiency. Even though medicines exist, not everyone takes them. Big organizations like WHO and UNICEF are concerned about this. So I had this idea to create bindis and lipsticks that can get iron into your body through your skin. It's an innovative way to address a critical health concern through everyday-use beauty products. Our aim is not to fix people's busy lifestyles but to provide a complementary approach. Take another example, our perfume is made from vegetable-origin alcohol– it's a unique conception."

Clensta has been doing some groundbreaking work since 2016 — ''For Vitamin C in your hand creams to be effective, it must penetrate the skin. But the particle is naturally too large to enter the pores, and many brands do not care. What is the point of claiming that your product has Vitamin C if it is not going to be absorbed?" — but the real transformation of the company is beginning now with the arrival of Parineeti Chopra as its newest face. With a TV commercial in the works and a robust marketing budget, the company is poised for a brand new chapter.

"See, in our industry, there are those who manufacture products and there are those who market them, with marketers often lacking a deep understanding of the product itself. We do both ourselves and believe in the power of a superior product to speak for itself."

And speak it does. Selling in over ten countries, Clensta has consistently increased profitability, starting with a 20 per cent gross margin, and achieving an impressive 60 per cent over the years. All of this has been possible through strategic investments, particularly on teams. "We invest heavily on talent. Now we have a dedicated team of 300 individuals driving our vision forward. We place a strong emphasis on retaining our leadership and management. For our junior team, we've implemented a program known as CAS (Clensta Administrative Services) under which we sponsor the fees for anyone who wishes to pursue a master's degree. We have initiatives that push learning, earning, and recognition. I believe in Ouchi's Theory (from the 1980s) that employees can be trusted to do their jobs to their utmost ability, so long as management can be trusted to support them and look out for their well being," notes Puneet.

He is no different to himself. ''I don't measure my work in hours; I focus on having clear goals. Doesn't matter if you do a 7-hour or a 70-hour work-week! The goals you set for your life, both short-term and long-term, should guide how you allocate your time."

The Jack Ma admirer and obsessive reader reveals his goals for Clensta.

"In the short term, the immediate goal is to elevate the contribution margin for the company. Since we are expanding, it's vital to balance growth with profitability. We are maintaining a strong focus on being capital-efficient during this phase. Looking into the future, I see massive scaling and ultimately an IPO."

For now, he is pleased with their growth trajectory. "I come from a Delhi family with limited financial resources. The government here provides ample support to budding entrepreneurs if your core vision is right. Clensta was incubated at Nexus, a collaboration between the American Embassy, New Delhi, and ACIR. And just recently, we raised about $9.12 million (Rs 75 crore) in our pre-series B round of funding, led by Trade Cred and co-led by the Royal Family of the UAE."

Before we leave, I ask his advice for the first-time founders – "Execution is the only thing. Ideas and plans are important, but without effective execution, everything will fall flat. Failures will bring learning and clarity."