Mumbai-based Ayurvedic D2C brand Kapiva set to raise over Rs 200 Cr from OrbiMed

According to the reports from Entrackr, domestic D2C ayurvedic nutrition brand Kapiva is in late-stage negotiations to raise more than Rs 200 crore from OrbiMed. This is the company's first investment round for 2022.

“OrbiMed is likely to lead Rs 200- 250 crore worth Series C round across several tranches in Kapiva,” “Existing investors such as 3one4 Capital and Vertex Ventures will also join the new round.” said a source to Entrackr.

Mumbai-based Kapiva was launched by Shrey Badhani and Ameve Sharma in 2015. 

Ayurveda is meant to be simple, and Kapiva is a D2C holistic modern Ayurveda brand on a mission to empower everyday wellness. It offers practical and accessible solutions that can be quickly incorporated into people's daily lives while keeping the needs of the customer at its core. Kapiva is recognized as India's first brand to provide super grain blends, making it an innovator and disruptor.

The company places a specific emphasis on using methods supported by research and science along with the greatest components available to offer customers the best-in-class and practical solutions. The brand is providing Indians with healthcare solutions like medical consultations and diet charts along with the products to guarantee that the consumers have complete support to achieve their health objectives, taking its belief in holistic wellness a step further.

A spokesman for Brand Kapiva acknowledged the development and stated “Our vision is to empower every household across the globe with access to modern, convenient, and holistic Ayurveda. With this goal in mind, we are raising a new round of funding of INR 223 crores led by investors like Orbimed, Vertex Ventures & 3one4 Capital. We will utilize this funding towards international expansion, bolstering offline presence, and delivering tech-enabled post-purchase programs for holistic solutions.”

What makes them distinctive is they have a 360-degree, holistic approach to health and wellness. Along with giving items that solve problems, they also empower their customers by offering services like diet plans and medical visits, which help them along every step of their healthcare journey.

They were among the first companies to develop Ayurveda for millennials, which entails the benefits of traditional Ayurveda in contemporary, practical, and approachable formats. They consistently innovate while keeping the demands of our customers at the center of their work. Our greatest strength is our ability to find the highest-caliber ingredients available. Each product's individual sourcing history demonstrates the meticulous planning and consideration that went into getting it to the consumer.

After examining MCA files, the funding was further verified. According to Kapiva's regulatory filing with the Registrar of Companies (RoC), the startup has already raised Rs 48.75 crore from OrbiMed and other current investors. With a contribution of Rs 40 crore, OrbiMed led the first round of the Series C financing. Next, Rs 5 crore and Rs 3.75 crore each was contributed by 3one4 Capital and Vertex Ventures.

Fintrackr estimates that the Baidyanath Group-backed business has received a valuation in this tranche of about Rs 455 crore (post-allotment). Including a Series B investment raised in October 2021, the company has so far raised about $16 million.

Vertex Ventures currently owns 12.64% of Kapiva after this tranche's allocation, followed by OrbiMed and 3one4 Capital with 8.8% and 5.15%, respectively. Co-founders Ameve Sharma and Shrey Badhani own 27% of the company as a whole. After the Series C round's closing, the company's valuation and shareholder structure will change.

“The terms of the deal are almost finalized and if nothing goes wrong from here the aforementioned sum will flow over the next two quarters,” stated a second source who also requested anonymity since the conversations are private.

Although Kapiva has not yet made public its financial data for FY22, it has reported that its revenue from operations increased by 2.4X in FY21 from FY20 to Rs 40.8 crore. According to the company's annual financial records filed with the RoC, losses increased 2.3X to Rs 25.14 crore in FY21 from Rs 10.98 crore in the previous fiscal year (FY20). By the end of FY25, Kapiva hopes to reach a global turnover of Rs 100 crore thanks to its expansion plans in the US and UAE markets.