Kapiva, a direct-to-consumer Ayurvedic nutrition brand, saw its losses increase by 34% to INR 64.6 Cr in FY23 compared to INR 48.2 Cr in the preceding fiscal year. This expansion in losses was attributed to the startup’s rising expenses, which aligned with its expanding business operations.
Despite a nearly 94% surge in operating revenue to INR 114.5 Cr in the fiscal year under review from INR 59.1 Cr in FY22, its bottom line suffered.
Established in 2016, Kapiva specializes in Ayurvedic nutrition offerings such as juices, consumables, gummies, capsules, hair oil, and shampoos, boasting a portfolio of over 100 SKUs. Additionally, the startup facilitates consultations with Ayurvedic doctors.
In FY23, the company’s total revenue, including interest income, reached INR 116.5 Cr, marking a significant increase from INR 62.4 Cr in the preceding year.
Kapiva’s Breakdown of Expenses:
In the reported fiscal year, Kapiva’s total expenses surged by 64% to INR 181.1 Cr from INR 110.5 Cr in FY22, with purchases of stock-in-trade contributing a majority of 52.4% to the total spending.
In FY23, spending within the “Purchases Of Stock-in-Trade” category for the D2C band surged by nearly 55%, reaching INR 42.3 Cr compared to INR 27.3 Cr in the preceding fiscal year.
The startup’s employee benefit expenses witnessed almost a 46% rise to INR 32.8 Cr in FY23 from INR 22.5 Cr in the previous year.
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In that regard, the startup allocated INR 25.7 Cr towards salaries and wages, marking a year-on-year (YoY) increase of more than 23%.
Conversely, Kapiva’s expenditure on ESOPs rose to INR 5.7 Cr in FY23 from INR 73.5 Lakh in the previous year.
During FY23, the D2C brand allocated INR 64.3 Cr towards marketing. However, the company did not disclose its spending in this area for FY22 in its FY23 financial filing.
Kapiva attributed the rise in its loss during the reported fiscal to increased investment in team expansion and marketing expenses, driven by business growth.
The company’s expenditure on Freight Cost amounted to INR 17.3 Cr in the fiscal year, up from INR 12.3 Cr in FY22.
Backed by Vertex Ventures, Fireside Ventures, and 3one4 Capital, Kapiva has raised $15.77 million across multiple rounds thus far. According to its FY23 financial filing, the D2C brand anticipates strong business performance and promising returns in the future.
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