Kapiva, the Ayurvedic nutrition flagship D2C brand, has successfully raised Rs 83.5 crore (approximately $10 million) in its latest funding round, led by OrbiMed Asia. The round also saw participation from 3One4 Capital and Vertex Ventures. Regulatory filings from the Registrar of Companies indicate that the Kapiva board approved the issuance of 5,62,631 compulsorily convertible preference shares to secure this investment.
The funding round, in which OrbiMed Asia contributed Rs 52.2 crore, included significant contributions of Rs 11.96 crore from 3One4 Capital and Rs 19.33 crore from Vertex Ventures. This latest capital infusion is part of an extension to Kapiva’s Series C funding, with the company aiming to raise a total of Rs 250 crore.
Entrackr had previously reported on Kapiva’s Series C round back in November 2022. With this new funding, Kapiva has successfully raised Rs 132 crore in the current round alone. Earlier, the company had secured Rs 48.75 crore (or $6 million) in October 2022 from OrbiMed and other existing investors.
To enhance employee retention, Kapiva has expanded its Employee Stock Ownership Plan (ESOP), adding 1,415,00 new employee stocks and increasing the ESOP pool by 4,47,741 shares. Current filings estimate the total ESOP pool at Rs 66 crore.
The freshly acquired funds will be utilized to accelerate growth and solidify Kapiva’s position in the competitive ayurvedic nutrition market. Since its inception in 2015, the company has raised over $30 million, attracting a diverse array of investors including Jetty Ventures, Fireside, OrbiMed, and 3One4 Capital. According to insights from startup intelligence platform TheKredible, the startup is now valued at around $80 million post-allotment.
Kapiva specializes in natural and organic health and skincare products that address a variety of health issues, including hair fall, weight loss, digestion, and diabetes. Its product range includes juices, teas, oils, shakes, and more. The company reported an impressive 87% year-on-year growth, achieving Rs 116.48 crore in revenues for the fiscal year ending March 2023. However, it also recorded a loss of Rs 64.5 crore for the same period, with annual fiscal 2024 results yet to be released.
In an increasingly crowded D2C ayurveda segment filled with organized brands, Kapiva faces stiff competition from notable players such as Upakarma Ayurveda, Dr. Vaidya’s, and Varalife. However, with fresh funding and sustained growth momentum, Kapiva appears well-positioned to scale up in the burgeoning ayurvedic nutrition space.