Kapiva spends Rs 188 Cr on advertising in FY25; posts Rs 342 Cr revenue

Ayurveda wellness brand Kapiva sustained its strong growth momentum in the fiscal year ended March 31, 2025, as revenue rose nearly 50% year on year. However, higher incremental spending during the year weighed on the bottom line and led to a 23% increase in the company’s losses over the same period.

Kapiva’s revenue from operations grew 50% to Rs 342 crore in FY25 from Rs 228 crore in FY24, according to its consolidated financial statements sourced from the Registrar of Companies (RoC).

Founded 2015, Kapiva is an ayurvedic nutrition brand offering natural and organic products in categories such as diabetes, hypertension, liver health, hormonal balance, wellness, energy, and sports nutrition. Sale of these products was the sole source of revenue for the company. Including non-operating income of Rs 7 crore, the company’s total income stood at Rs 349 crore in FY25.

For the D2C brand, advertising and promotional expenditure remained the largest cost contributor, accounting for 45% of the total expense. This cost rose 53% to Rs 188 crore in FY25 from Rs 123 crore in FY24.

Cost of materials consumed grew 43% to Rs 97 crore, contributing about 23% of overall costs, while employee benefit expenses increased 28% to Rs 59 crore. Transportation cost stood at Rs 22 crore, legal charges doubled to Rs 16 crore, and other overheads added another Rs 36 crore during the year.

Overall, the company’s total expense rose 44% to Rs 418 crore in FY25 from Rs 290 crore in FY24. For a more detailed expense breakdown, refer to TheKredible.

Kapiva’s net loss rose 23% to Rs 69 crore in FY25 from Rs 56 crore in FY24. Its ROCE and EBITDA margin stood at -51.41% and -20.88% respectively.

On a unit level, the company spent Rs 1.22 to earn a rupee, better than Rs 1.27 it spent in FY24. The company recorded cash and bank balances of Rs 139 crore, while its current assets were valued at Rs 199 crore in the same period.

According to TheKredible, Kapiva has raised a total of $90 million of funding till date, Including the $60 million raised in Series D, led by 360 ONE Asset and Vertex Growth. 

While one can blame some of the high spending for chasing growth metrics after funding, the overall picture remains dismal, one has to say, for Kapiva. One can hope that multiple costs, be it advertising, legal and other overheads will probably be reined in, the fact remains that the firm’s growth has been nowhere close to what it should be with the investments made. The cost of materials at 23% is relatively low when we compare with other peer firms, whose materials cost has typically been above 30%. A Shilajit-focused portfolio also makes one wonder about the proportion of the famous ingredient in the products. Shilajhit might have its benefits, but it is clearly not working for Kapiva as it should.