Kapiva, a D2C Ayurvedic consumer products startup backed by Fireside Ventures and Vertex Ventures, reached a noteworthy milestone in the fiscal year 2022-23. The company’s revenue crossed the INR 100-crore mark for the first time, underscoring its dedication to expansion through continued investment.
In FY23, Kapiva reported a revenue of INR 114 crore from operations, nearly doubling the figure of INR 59 crore in FY22, as per regulatory filings with the Registrar of Companies (RoC). However, the company also witnessed a widened net loss, increasing from INR 48 crore in the previous year to INR 64 crore in FY23.
The increased losses were attributed to “additional investments in the team and marketing costs.”
The company recorded a total revenue of INR 116.4 crore in FY23, a substantial rise from INR 62 crore in FY22, with a significant portion attributed to product sales on its platform.
In FY23, the startup incurred total expenses amounting to INR 181 crore, showing an increase from INR 110 crore in FY22. Specifically, sales and marketing expenses reached INR 64 crore in FY23. Furthermore, total employee benefit expenses escalated to INR 33 crore in FY23 from INR 22 crore in FY22, while transportation costs rose to INR 17 crore from INR 12 crore during the corresponding period.
Established in 2015, Kapiva specializes in Ayurveda-based fast-moving consumer goods, spices, and health and wellness products that target concerns like hair fall, weight loss, digestion, and diabetes.
Due to the increasing demand for Ayurveda and wellness products, the market for Ayurvedic products is projected to surge to INR 1,82,400 crore by 2028, witnessing significant growth from INR 62,600 crore in 2022. This growth is anticipated at a compounded annual growth rate of 19.3% during the period from 2023 to 2028, according to the market research firm International Market Analysis Research and Consulting Group (Imarc Group).
The Ayurvedic products market has experienced heightened consumption following the Covid-19 pandemic, coupled with a government-driven initiative to endorse Ayurvedic products.
Kapiva Goes Global:
The company, backed by investors such as 3one4 Capital, Maninder Gulati of Oyo, and Rishabh Mariwala of Marico, is strategizing international expansion. In April 2023, it injected $2 million into its US-based subsidiary for this endeavor. In June 2023, Kapiva appointed Nicholas Kelley as the CEO for the United States.
Read Other Articles: Kapiva eyes US market dominance, ramps up operations with seasoned executives
Furthermore, in December 2023, it announced a collaboration with Bollywood actor Tiger Shroff.
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As per Tracxn, Kapiva has secured more than INR 22 million in funding. This includes a funding round of over INR 6 million finalized in October 2022, with contributions from investors such as healthcare-focused, mid-stage private equity firm Orbimed, Vertex Ventures, and 3one4 Capital.
Amongst various D2C Ayurveda brands, The Ayurveda Co secured INR 100 crore in funding in March 2023, while The Ayurveda Experience, backed by Anicut Capital, raised INR 50 crore in December 2022.