Kapiva, a direct-to-consumer (D2C) ayurvedic brand, reported a substantial increase in revenue for FY23, reaching INR 114 crore, nearly double the INR 59 crore recorded in FY22. This remarkable growth can be attributed to the company’s continued investment in expansion efforts and its focus on ayurveda-based fast-moving consumer goods, spices, and health and wellness products.
The company’s expansion efforts, both domestically and internationally, have contributed to its revenue growth. Kapiva invested $2 million in its US-based subsidiary in April 2023, with plans to expand its presence in the international market. The ayurvedic products market has witnessed increased consumption, driven by the heightened demand for wellness and natural products. Kapiva is well-positioned to capitalise on this trend, with the market expected to reach INR 1,82,400 crore by 2028.
While Kapiva’s revenue growth is impressive, the company also experienced an increase in expenses. In FY23, its total expenses amounted to INR 181 crore, up from INR 110 crore in FY22. The rise in expenses can be attributed to additional investments in the team, marketing costs, and transportation expenses. Additionally, Kapiva’s net loss widened to INR 64 crore in FY23, compared to INR 48 crore in the previous year.
RTM Watch’s Take
Kapiva’s revenue doubling in FY23 showcases the brand’s strong market presence and successful expansion strategies. The company’s focus on ayurveda-based products aligns with the growing demand for wellness and natural solutions. While the net loss widened, it is important to consider the long-term investments made by Kapiva in team expansion and marketing, which are expected to yield positive results in the future. With its plans for international expansion and a rising market demand for ayurvedic products, Kapiva is well-positioned for continued growth and success.
