New Delhi, Feb. 12 -- A new wave of Indian incense-making startups is looking beyond the domestic market for growth, lured by the scent of more lucrative prospects overseas.

As they struggle to compete against legacy companies in the domestic market, startups in this space are experimenting with new blends and fragrances and tapping e-commerce platforms and international retail chains to make their products available globally.

Startups including Phool, Hoovu, Kalyanamm, Nirmalaya and Nytarra have created clean and sustainable religious and lifestyle aromatherapy products such as incense sticks, particularly targeting the urban consumer. Many of these startups use recycled floral waste generated by temples or other natural ingredients to...