Homegrown perfume brands smell strong growth through capital infusion

Homegrown fragrance brands are scaling fast as young Indians turn perfumes into daily lifestyle statements, pushing India's scent market towards a $4-billion future

Homegrown luxury brands are raising capital to capture a chunk of the country’s growing fragrance market, in which imported products and mass deodorants have long been predominant.

 

House of EM5, an Indore-based brand led by Shashank Chourey, exemplifies the speed at which new-age fragrance products are scaling up.

 

The brand shipped just 900 online orders in its first year (2022-23). Today, it processes more than 2,000 orders a day and sells nearly 80,000 bottles a month.

 

A majority of its customers are in the 28-45 age group. 

 

The company’s manufacturing centre, of 30,000 square feet and with a capacity of producing 60,000-80,000 units a month, is saturated. A new 100,000-square foot unit in Indore is coming up and will have a monthly capacity of 200,000 units.

 

House of EM5 raised capital from Aman Gupta, cofounder of boat, and has invested ₹5-6 crore in operations and expansion so far.

 

Chourey said the company was profitable and not in immediate need for fresh capital though investor interest remained strong.

 

In the past three years, the perfume brand has generated about ₹200 crore in turnover and is targeting ₹500 crore over the next three years.

 

Its best-selling fragrances include Aghori, Nomade, and Afgano while upcoming launches such as Kashmir, Chambal, and Madhushala-blends aim to deepen its portfolio. The brand plans to enter bath and body categories while staying focused on fragrance-led products.

 

Offline expansion is on the road map, starting with Indore, followed by a global pilot through Amazon First in markets such as the United Arab Emirates, Australia, the United States (US), the United Kingdom (UK), and Canada. 

 

According to a report of Motilal Oswal, in December last year, India’s fragrance market, valued at $2 billion, is projected to reach $4.08 billion by 2030. The market is expected to grow to 120.7 million users by 2029.

 

Gujarat-headquartered Adil Qadri, founded in 2018, has built a strong identity in premium attars and perfume oils.

 

“We always wanted to play in the premium segment,” said founder Adil Qadri, noting that the mass segment was already crowded.

 

The brand currently sells 250,000-300,000 bottles and produces inventories four to five months in advance through third-party manufacturing partnership in Maharashtra.

 

Adil Qadri raised ₹50 lakh on Shark Tank India and now clocks ₹11-12 crore in monthly turnover, funding expansion largely through internal accruals.

 

Online channels account for 70-80 per cent of sales, with retail contributing the rest.

 

The brand operates 49-50 stores in cities such as Mumbai, Lucknow, Hyderabad, Jaipur, Surat, and Ahmedabad, and plans to expand those to 111 over the next 2.5-3 years.

 

However, growth is deliberately capped at 10-15 per cent annually. “We believe in slow growth instead of rushing.”

 

Men aged 18-35 account for 70-80 per cent of buyers. Internationally, the brand has a presence in Dubai and sells online in the UK, the US, Canada, and Saudi Arabia, with plans to open overseas stores in the next two to three years. 

 

For Fraganotes, based in New Delhi and founded by Garima Kakkar in 2022, said the brand was born out of a gap between aspirational international fragrances and affordable but low-performance local options.

 

Fraganotes raised $1 million in a pre-Series A round from Rukam Capital in August last year. The company is planning to strengthen its offline footprint in Tier-I metros over the next two years, while deepening its presence in high-potential Tier-II cities such as Solan, Varanasi, and Kolkata. Early international exploration is also on the cards.

 

Moreover, Fraganotes is aiming to establish itself as a category-defining brand in the premium affordable segment over the next three years, with an eye to global visibility.

 

Bengaluru-headquartered HIRA Fragrances, owned by Meolaa, plays in the premium segment. Meolaa raised $6 million in a pre-Series A round in October. Of that 30-35 per cent, or about $2-2.2 million, will be deployed in HIRA over the next 12-18 months.

 

“The objective is distribution depth, repeat rates, and contribution margins, not just footprint,” said Ishita Sawant, founder of Meolaa. In the next year, HIRA will focus on a pan-Indian expansion through marketplaces, quick commerce, and direct-to-consumer channels. Over 12-24 months, the brand is planning to enter travel retail and cross-border ecommerce, targeting the Gulf and the US.

 

HIRA is targeting ₹300 crore in annual revenue by FY28, representing less than 3 per cent penetration of India’s projected premium fragrance market. Gen Z drives discovery and repeat usage, while young millennials dominate higher-value gifting purchases.

 

Ernst & Young (EY), which tracks the industry, has said that India’s per capita fragrance consumption remains significantly lower than that of developed and several emerging markets, leaving ample room for growth.

 

“Growth will be driven by premiumisation, increased grooming awareness among younger consumers, and a shift from occasional to more regular usage,” said Paresh Parekh, partner and national leader for tax-consumer products and retail, EY India.

 

“The market is transitioning from a niche luxury category to a broader lifestyle segment, with consumers owning different perfumes for work, casual settings, weather, and occasions.”

 

Moreover, online and omni-channel platforms now play a central role in fragrance discovery, allowing brands to scale beyond metros to Tier-II and -III markets, something that was previously exorbitant.

 

The shift has attracted investor interest, which in turn “clearly strengthened, particularly at the seed and early growth stages”.

 

EY said the industry boom offered India a chance to move up the value chain. “India is already a major producer and exporter of aroma chemicals and essential oils,” Parekh said. “Investing in domestic fragrance brands allows India to move from being a raw-material supplier to a creator of finished, branded consumer products.” 

Capital fragrance

• Indian fragrance market projected to reach $4.08 billion by 2030
• Fraganotes raised $1 million in a pre-Series A round from Rukam Capital
• Adil Qadri raised ~50 lakh on Shark Tank India 
• Meolaa raised $6 million in a pre-Series A round