Kapiva, a direct-to-consumer ayurvedic brand, is raising its last tranche of Rs 300-330 crore ($40 million) in funding to scale up its operations and scale the business. An existing investor, OrbiMed, will lead the round, while other notable firms such as Fireside Ventures, Vertex Ventures, and 3One4 Capital will also participate in this round.
Kapiva was established in 2016 offering Ayurvedic nutrition products with several things such as juices, teas, oils, and shakes for various health-related issues like hair fall, weight loss, diabetes, digestion, etc. More people spending on premium health products has proven to attract more interested investors in Kapiva.
The company, after raising the funds, would be valued at around $130-150 million (Rs 1,100 to 1,250 crore), very modestly higher compared with the previous valuations. A spokesperson for Kapiva responded to ET queries by saying that the internal funding round has closed but that an amount raised at this funding may have been miscommunicated. “We are excited about our growth trajectory and continue to focus on making Ayurveda accessible to every household,” said the spokesperson.
While numbers have not been disclosed, Kapiva appears to have raised less than anticipated capital. Deal terms may have, however, changed over time. The funding has been in the pipeline for months now, with strengthening financials and rising customers.
While the company has not announced its FY24 financial results, Kapiva has still witnessed high growth in FY23 and managed to deliver revenues of Rs 115 crore, which is an almost 95% increase from FY22 when the revenues stood at Rs 59 crore. Losses witnessed a rise to Rs 65 crore in FY23 from Rs 48 crore in FY22 as the company sought to scale up the product line and invest in growth at all costs rather than focusing on profitability.
Kapiva has raised over $40 million from investors in the last five years since it was launched. OrbiMed stands out as the biggest shareholder, holding over 30% of the Baidyanath Group at around 12% and Vertex Ventures at more than 11%.
