Koparo, an eco-friendly direct-to-consumer (D2C) brand focusing on sustainable home and personal hygiene products, recently secured $1.5 million in a Pre-Series A funding round. Leading the investment was Saama Capital, while new institutions Fluid Ventures and M Venture Partners, along with prominent angels Rajesh Sawhney (Founder and CEO of GSF Accelerator), Sridhar Sankararaman (Multiples PE), and Ramesh Menon (formerly associated with Future Group and Hypercity), joined as co-investors. The round also witnessed continued support from existing investor DSG Consumer Partners.
Funds raised in the current round will be carefully allocated towards establishing a strong offline presence, enhancing brand recognition, and fostering product innovation. Koparo has achieved impressive expansion over the past year, witnessing a tenfold increase in revenues since its previous funding round. In the previous year, the company secured a seed round investment of $750K from Saama and DSG Capital, both of whom have shown renewed confidence by increasing their investment in the current round.
Koparo, an innovative company providing a natural alternative to conventional cleaning products, was established by Simran Khara. With an impressive background that includes experience at prestigious organizations such as McKinsey & Co and Star TV, as well as serving as the CEO of digital media startup Juggernaut Books, Simran Khara brings valuable expertise to Koparo.
Recognizing the potential of Koparo’s unique offering, the company was chosen to participate in the prestigious Founder Stack program by Accel. This program provided Koparo with an exceptional opportunity to receive three months of mentorship from Accel, a prominent venture capital firm. With Accel’s guidance, Koparo aimed to build and expand their consumer startup, catering to the needs of the modern era.
Presently, the company boasts a diverse range of more than 15 products and over 30 stock keeping units (SKUs) encompassing core cleaning, specialty cleaning, and accessories. These products are accessible through the company’s official website, which accounts for approximately 40% of the total revenue. Additionally, they are also made available through prominent e-commerce platforms and distributed across 70 stores belonging to Reliance Retail and Modern Bazaar.
Simran Khara, Founder, Koparo, said, “The modern Indian home is ready for new cleaning products that are effective yet not laden with harsh chemicals. Several sub-categories within cleaning are already responding well to our proposition. With the backing of some of the best consumer investors, we feel confident of executing well on our category defining play at Koparo.”
To meet the growing demand for hygiene products, Koparo has strategic plans in place. These include the introduction of new variants for their popular products, the development of a specialized range of cleaners tailored to modern Indian cleaning requirements, and the launch of complementary kitchen and home cleaning accessories. The company also aims to strengthen its presence in the laundry sector, which is the largest sub-category in the home cleaning industry, while also expanding its range of pet-friendly products.
Koparo has recently unveiled a kennel wash specifically designed for pet homes, along with a selection of cleaning accessories such as biodegradable sponge wipes and microfiber dusting cloths, catering to the needs of contemporary households. With a clear growth vision, Koparo aims to accelerate its trajectory by achieving an eight-fold increase in revenues within the next 18-20 months. This will be accomplished through a focused approach on their core product range, expanding distribution channels, and introducing products in new sub-categories.
Ash Lilani, Founder and Managing Partner, Saama Capital, said, “We are privileged to have witnessed Simran’s growth from 0 to 1 since our pre-seed investment. Koparo has been instrumental in building the premium, sustainable home and hygiene category in India. With a curated product portfolio of home and kitchen cleaning products, laundry detergents, fresheners and fragrances, and unwavering focus on using natural, better-for-you ingredients, Koparo has grown its monthly revenues by 10x since our last investment in November 2021. More importantly, they have built a strong brand that is loved and trusted by consumers. Saama is excited to support the brand through its next phase of growth.”
Based on a report by Imarc, the Indian household cleaners market achieved a value of $7.5 billion in 2022, and it is projected to grow at a compound annual growth rate (CAGR) of 18.9% over the next five years. This growth signifies a significant trend in the industry, as the premium segment is experiencing a remarkable annual growth rate of over 30%. This indicates a shift in consumer preferences as Indian households increasingly seek safe and toxin-free products for their homes. Many prominent players in the home care industry are recognizing this opportunity and making substantial investments to tap into this premium demand.
In this dynamic landscape, Koparo is emerging as a key player, benefitting from its product portfolio and the increasing acceptance of its offerings. By being an early entrant, Koparo has gained a competitive advantage in this evolving market. Although it is still early days, the company’s strategic positioning and growing acceptance among consumers have positioned it well to leverage the changing preferences and capture a significant share of the premium home care market.
Hiran Embuldeniya, Partner, M Venture Partners, said, “Simran’s visionary approach to reshape household cleanliness with a positive ecological impact fits well with MVP’s focus on the consumer brands in India. We are excited to partner with Koparo on this journey to create a cleaner and greener future for the rapidly growing urban households in India”