Exclusive: D2C brand Kapiva set to raise over Rs 200 Cr from OrbiMed

Homegrown D2C ayurvedic nutrition brand Kapiva is in late-stage talks to raise over Rs 200 crore from OrbiMed, according to two sources aware of the details of the transaction. This is the first funding round for the firm in 2022.

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

Brand Kapiva spokesperson confirmed the development and said, “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.”

Founded in 2015, Kapiva is a modern ayurvedic nutrition brand that offers natural and organic health and skincare products for hair fall, weight loss, digestion, diabetes in the form of juices, tea, oils, shakes et al. It claims to have over 2 million customers.

The funding was further confirmed after sifting through MCA filings. The Mumbai-based company has already raised Rs 48.75 crore from OrbiMed and other existing investors, Kapiva’s regulatory filing with the Registrar of Companies (RoC) shows. OrbiMed has spearheaded the first tranche of the Series C round with Rs 40 crore followed by 3one4 Capital and Vertex Ventures which infused Rs 5 crore and Rs 3.75 crore respectively.

As per Fintrackr’s estimates, the Baidyanath Group-backed company has been valued at around Rs 455 crore in this tranche (post-allotment). The company has raised around $16 million to date including a Series B round raised in October 2021.

Post allotment of this tranche, Vertex Ventures holds 12.64% stake in Kapiva followed by OrbiMed and 3one4 Capital with 8.8% and 5.15% stakes. The firm’s co-founders - Ameve Sharma and Shrey Badhani collectively own 27%. The shareholding pattern and valuation of the company will vary after the closure of the Series C round.

“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,” said the second source who also wished not to be named as talks are private.

While Kapiva has not disclosed its financial numbers for FY22 yet, its revenue from operations grew 2.4X to Rs 40.8 crore in FY21 from Rs 16.7 crore in FY20. As per annual financial statements with the RoC, the company’s losses also ballooned 2.3X to Rs 25.14 crore in FY21 as compared to Rs 10.98 crore in the previous fiscal (FY20). On the back of its expansion plan in the US and UAE markets, Kapiva is aspiring to hit the Rs 100 crore global revenue mark by the end of FY25.