Kapiva, a D2C brand will raise more than Rs 200 Cr from OrbiMed
- ByStartupStory | November 19, 2022
According to two sources familiar with the specifics of the transaction, domestic D2C ayurvedic nutrition company 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. One of the individuals, who wished to remain anonymous, stated that “OrbiMed is set to lead Rs 200-250 crore worth Series C round over numerous tranches in Kapiva.” Vertex Ventures and 3one4 Capital, two current investors, will also participate in the fresh round.
A spokeswoman for Brand Kapiva verified the news and stated, “Our mission is to empower every home throughout the world with access to contemporary, practical, and holistic Ayurveda. We are raising a new round of funding of INR 223 crores with the help of investors including Orbimed, Vertex Ventures, and 3one4 Capital with this objective in mind. We’ll use this money to grow internationally, strengthen our offline presence, and provide tech-enabled post-purchase programmes for all-encompassing solutions. For hair loss, weight loss, digestion, and diabetes, Kapiva is a modern ayurvedic nutrition brand that offers juices, tea, oils, shakes, and other natural and organic health and skincare products. It asserts to have more than 2 million clients. Examining MCA files provided additional confirmation of the funding. According to Kapiva’s regulatory filing with the Registrar of Companies (RoC), the Mumbai-based company 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 round. 3one4 Capital and Vertex Ventures then contributed Rs 5 crore and Rs 3.75 crore, respectively. Estimates indicate that this tranche’s valuation for the Baidyanath Group-backed enterprise is approximately Rs 455 crore (post-allotment). Including a Series B round 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 shareholding structure will change. According to the second source, who also wished to remain anonymous because negotiations are in private, “the terms of the deal are almost finalised and if nothing goes wrong from here the aforementioned sum will flow over the next two quarters.” 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 statements filed with the RoC, losses increased 2.3X to Rs 25.14 crore in FY21 from Rs 10.98 crore the previous fiscal year. By the end of FY25, Kapiva hopes to reach a global revenue of Rs 100 crore thanks to its expansion plans in the US and UAE markets.
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