Edition 16 already and we haven’t covered any D2C startup in Modern Ayurveda–an industry that’s worth INR 57,450 Cr in India, growing at a CAGR of 15%.

So, we picked the industry-leader – Kapiva – a D2C brand in Modern Ayurveda that

✔️ Has presence in 8500+ retail stores

✔️ Was offline-first, but making 85% sales from online channels today

✔️ Clocked INR 116.5 Cr in FY23, an 86% jump compared to FY22

We’ll dive into Kapiva’s growth levers in a bit.

How about a brain-teaser, first? We promise it’s fun!

Imagine your D2C brand relies on high-quality herbs sourced directly from farmers, but as you scale, your current suppliers can’t meet the demand without compromising quality.

Teaser: How would you scale production without diluting the quality of ingredients?

Did you find an answer?  

In a similar situation, Kapiva came up with a bold solution!

If sourcing high-quality herbs isn’t feasible, why not grow your own?

Kapiva is in talks to acquire 1,000 acres of land on the Maharashtra-Madhya Pradesh border to cultivate ingredients themselves. 

Talk about gutsy! Ameve Sharma and Shrey Badhani have been scaling Kapiva with this mindset ever since they launched in 2016

A Sneak-Peak Into The Product Line Of Kapiva

Kapiva is answering a huge consumer demand—traditional Ayurveda backed by modern science. And they’re not holding back! From herbal supplements and juices to oils and skincare essentials, they’ve launched a wide range of products rooted in this winning combination.

With 100+ SKUs, Kapiva ensures that every product is sourced with precision, focusing on purity and authenticity. Take their Aloe Vera Gel, for example—it’s extracted within 4 hours of harvest! That’s commitment to freshness!

The results speak for themselves. Kapiva products boast an average rating of 4.5+ on Amazon, Flipkart, and JustDial. Not bad, considering most of these products are perishable! Now that’s the kind of number that gets people talking!

Kapiva’s Growth Levers

Design That Appeals To The Eye! 👀

Before 2019, Kapiva wasn’t exactly bullish with its packaging—simple, minimal, and honestly, not the most creative. There wasn’t a standout design philosophy, so their products kind of blended in on the shelves. Here’s an example:

But 2019 changed everything! Kapiva went through a total design overhaul, complete with a fresh logo and a revamped design philosophy.

They made a genius move by prominently featuring natural ingredients on packaging. And the introduction of the human hand holding those ingredients?

Absolutely poetic! It perfectly captured the essence of Modern Ayurveda, connecting customers more deeply with the products.

The result? Customers started to relate to Kapiva on a whole new level, and their revenue surged YoY! That’s what happens when you pair traditional Ayurveda with a fresh, modern twist.

We’ll get to the financials of Kapiva in the final section of this newsletter.

Performance Marketing For Kapiva’s Win! 💻

Kapiva has really mastered the art of performance marketing to push its products! Take their launch of Skin Foods – Glow Mix, for instance. Kapiva went all out with a rock-solid strategy. They didn’t just bring on board Malaika Arora as the face of the campaign—they also meticulously fine-tuned their marketing funnel to precisely target the right audience.

✔️ Ran ads on the channels where their TG (women) were most active – Youtube, Instagram, and Facebook

✔️ Targeted the right ICPs using custom keywords, affinities, and in-market segments related to skincare

✔️ Leveraged optimised frequency for video ad sequencing for all potential customers

✔️ Set video action campaigns to tap into deep funnel audiences

✔️ Gauged overall branding impact on D2C website and marketplaces, and optimised whenever necessary

While many D2C brands stick to influencers or affiliate marketing to sell their hero products, Kapiva went all in on performance marketing—and the results? Absolutely stellar!

Kapiva witnessed:

🔥 33% jump in brand awareness

🔥 840% search lift for the brand

🔥 2X surge in product revenue contribution

Performance marketing, when done right, is an asset for D2C founders. Aman Patial, one of our alums of D2CX, is the Founder of K9Vitality, a pet supplements brand. Before joining D2CX, his brand was clocking INR 2.5L a month. But in his 12 weeks at D2CX, he mastered performance marketing and implemented his learnings in his business. By the end of the cohort, he was making INR 15.5L a month. 

How Kapiva Nailed Customer Retention? 

Retention is key to a successful D2C brand, and Kapiva is absolutely crushing it with a mind-blowing 70-80% retention rate! How do they pull it off? Simple—by making each customer feel like a VIP with a completely personalised experience.

Here’s a screenshot from their website!

Here’s how they do it: The Kapiva website lets customers either get a customised solution or book a free 15-minute consultation with a doctor. During these calls, customers get expert advice on their dietary and nutrition needs, ensuring they pick the right Kapiva product tailored just for them.

The magic happens when you combine the right product with top-notch quality—customers just keep coming back for more! It’s no wonder their retention is off the charts.

Both in terms of revenue and funds raised, Kapiva tops the leaderboard in the Modern Ayurveda space.

How Kapiva Plans To Grow?

As Shrey shared in an interview, Kapiva is eyeing 5X growth, with plans to hit INR 1,200 Cr in revenue and solidify itself as a household name within the next 3 to 5 years. Their mission? To provide better health outcomes to 281 million Indian households—a bold goal.

To fuel this ambition, Kapiva is gearing up to raise INR 250 Cr this fiscal year. That’s no small feat, but with their growth track record, we’re sure they’ll make it happen.

We’ll definitely be keeping a close eye on Kapiva as they continue this exciting journey. What about you?