Homegrown D2C ayurvedic nutrition brand Kapiva has successfully raised Rs 83.5 crore (approximately $10 million) in a funding round led by OrbiMed Asia, with participation from 3One4 Capital and Vertex Ventures. This marks another significant step for Kapiva as it continues to grow in the competitive ayurveda market.

Funding Details

Kapiva’s board approved a special resolution to issue 5,62,631 compulsory convertible preference shares, allowing the company to raise the necessary funds. According to the Registrar of Companies, OrbiMed Asia led the investment with Rs 52.2 crore, while 3One4 Capital contributed Rs 11.96 crore and Vertex Ventures invested Rs 19.33 crore. This round is part of Kapiva’s Series C fundraising, through which the company aims to raise a total of Rs 250 crore.

In a previous Entrackr report from November 2022, it was revealed that Kapiva had already raised Rs 48.75 crore ($6 million) in its Series C round, making the total raised so far Rs 132 crore. The latest tranche adds to the brand’s growth journey, and Kapiva is now valued at around $80 million according to TheKredible.

For more details on Kapiva’s financial and strategic growth, visit TheKredible.

Expanding ESOP Pool

In addition to securing new funds, Kapiva has also increased its Employee Stock Ownership Plan (ESOP) pool by adding 1,41,500 new shares, raising the total ESOP pool to 4,47,741 shares. According to Entrackr, the current ESOP pool is valued at around Rs 66 crore, further boosting Kapiva’s appeal to employees and investors alike.

Growth Plans and Use of Funds

Kapiva intends to use the newly raised funds to expand and develop the company, focusing on product innovation, market penetration, and scaling operations. Founded in 2015, Kapiva has raised over $30 million to date and has attracted investments from prominent firms like Jetty Ventures, Fireside Ventures, OrbiMed, 3One4 Capital, and more.

The brand specializes in natural and organic ayurvedic products designed to address common health issues such as hair fall, weight loss, digestion, and diabetes. Their product line includes a variety of offerings such as juices, teas, oils, and shakes, catering to a growing market of consumers interested in holistic wellness.

Strong Financial Performance

Kapiva reported impressive growth in the fiscal year ending March 2023. The company registered an 87% year-on-year growth to Rs 116.48 crore. However, despite the increase in revenue, the company recorded a loss of Rs 64.5 crore during the same period. Kapiva is yet to file its results for FY24, but the company is optimistic about continuing its upward trajectory.

Competitive Landscape

Kapiva operates in a highly competitive D2C ayurvedic market, facing stiff competition from other well-established brands such as Upakarma Ayurveda, Dr. Vaidya’s, and Varalife. However, with a growing customer base and continued investment, Kapiva is positioning itself as a leading player in the ayurveda space.

Conclusion

With fresh funding and plans for growth, Kapiva is well on its way to becoming a dominant player in the D2C ayurvedic space. The company’s focus on natural and organic products, along with strong investor backing, sets the stage for further expansion and innovation in the health and wellness industry. As the brand continues to grow, it remains a key player to watch in the competitive ayurveda market.

For the latest updates on Kapiva’s growth and funding news, visit TheKredible.