As part of its expansion strategy, Vahdam India, the tea and wellness brand, intends to establish 8-10 experience stores in India and one in an international market within the next two years.
The initiative seeks to enhance the brand’s footprint in the domestic market, where it presently contributes approximately five percent of its overall revenue, as stated by Bala Sarda, Founder and CEO. The company concluded the previous fiscal year with revenues surpassing INR 200 crore.
Sarda emphasized that the brand’s primary focus is on crafting a successful playbook and delivering an exceptional customer experience through its first company-owned and operated experience store in Delhi.
Despite encountering challenges such as a strained bottom line resulting from the global recession and elevated input costs in the prior year, the company maintains an optimistic outlook regarding its growth prospects.
“We were in the negative last year, but I think we are recovering this year. By next year, we should get back to net profitability for the long term,” said the CEO.
Furthermore, it aims to attain an annual growth rate of 30-40 percent in the forthcoming years.
The central thrust of this expansion will be directed toward crucial international markets, encompassing the United States, Canada, the United Kingdom, and Germany. At present, international markets account for over 95 percent of its total revenues. The brand maintains a presence in 6,000 retail locations in the US, over 250 in Canada, and more than 500 in the UK.
Moreover, it plans to strengthen its foothold in current markets and distribution channels, with a specific focus on expanding within the spice category.
Vahdam recently ventured into the spice category, targeting the international market. “This strategic move aligns with the brand’s expertise in crafting blends that often consist mainly of pure spices with minimal tea content, such as chamomile tea.”
The expansion into spices was also driven by customer demand, resulting in the introduction of 25 single-origin spices tailored specifically for the US market,” he added.
In terms of fundraising, Vahdam currently does not have any immediate intentions to secure additional capital. So far, it has successfully garnered over INR 290 crore in funding from investors, including venture capital firms like IIFL AMC, Fireside Ventures, Sixth Sense Ventures, Mumbai Angels, and family offices such as Mankind Pharma. Nevertheless, as per Sarda, the tea brand remains open to the possibility of raising more capital in the future should the need arise.