D2C ayurvedic products startup Kapiva nears deal to raise Rs 330 crore in internal round

Investors are doubling down on Kapiva at a time when consumers have shown willingness to spend on premium products, especially if it is related to their health and wellbeing.

Direct-to-consumer (D2C) ayurvedic brand Kapiva is gearing up to raise Rs 300-330 crore (about $40 million) in an internal round to expand operations and grow its market presence, people aware of the development told Moneycontrol. Existing backer OrbiMed is likely to lead the round and others like Fireside Ventures, Vertex Ventures, 3one4 Capital and more may also participate.

Started in 2016, Kapiva is an ayurvedic nutrition brand that sells juices, teas, oils, shakes and more which help in treating hair fall, weight loss, diabetes, digestion and more. Investors are doubling down on Kapiva at a time when consumers have shown willingness to spend on premium products, especially if it is related to their health and wellbeing. At a larger level, investors have been rushing to back consumer companies across the board, as reported earlier.

“Kapiva is going to be valued at around $130-150 million (Rs 1,100 to 1,250 crore) after the fundraise, a slight mark-up from earlier,” one of the persons cited above said.

A Kapiva spokesperson confirmed the internal round has closed. “As a company, we are excited about our growth trajectory and expansion plans. In line with this, we have raised an internal round with participation from existing investors, though the scale of the round has been misrepresented. We remain committed to our mission of making Ayurveda accessible to every household and are grateful for the confidence that our investors show in us,” the spokesperson told Moneycontrol without revealing specific numbers.

It is likely that the company has raised lesser capital than it had set out to raise initially and deal terms have changed.

Kapiva’s round has been in the works for a few months now. Improved financials and a wider customer base has helped firm up the investor conviction around the company. While it is yet to file its FY24 numbers, Kapiva grew its scale to Rs 115 crore in FY23, up around 95 percent from Rs 59 crore clocked in FY22.

Its losses, however, widened to Rs 65 crore in FY23 from Rs 48 crore in FY22 as the company expanded product lines and prioritised growth over profitability.

Excluding the current round, the company has raised a total of over $40 million from a clutch of investors since its inception. While OrbiMed is its single largest shareholder with a stake of over 30 percent in Kapiva, the Baidyanath Group owns around 12 percent in the company and Vertex Ventures is next with over 11 percent stake.