D2C startup The Ayurveda Experience secures $27 million in funding led by Jungle Ventures
13-Mar-24 05:57:09
The Ayurveda Experience (TAE), a direct-to-consumer company focused on Ayurvedic beauty and health products, raised $27 million in a funding round led by Singapore-based venture investment firm Jungle Ventures.
The round also saw participation from investors like SIDBI Ventures, Anicut Capital and Sharrp Ventures (part of the Mariwala Family Office that runs consumer goods major Marico). Of the $27 million, about $15 million came in primary funding, with the proceeds going to the company, while the rest were towards secondary share sales by existing shareholders.
With this round, the firm has raised a total of $41 million so far, with Fireside Ventures being one of the earlier investors. Founder and chief executive Rishabh Chopra is the largest shareholder with an about 25% stake, followed by Jungle Ventures and Fireside Ventures.
“As India continues to assert itself on the global stage, a distinctive opportunity arises for our entrepreneurs to establish global brands with uniquely Indian flavours… At Jungle, we remain deeply committed to backing founders building brands deeply loved by the customers, and TAE fits very well into this," said Arpit Beri, partner at Jungle Ventures.
The funds raised will be invested in research and development, brand building, and in improving manufacturing and supply chain, Chopra told ET. More than 95% of the company’s sales come from foreign markets like the US, Australia, Europe and Canada. It is now looking to expand into a few “developed Asian economies”, he added.
The firm owns four lines of beauty and health products - iYURA, Ajara, A Modernica Naturalist and Ayuttva — which it manufactures, sells and distributes on its platform. It also offers a range of services including consultation, content, webinars, and courses on Ayurveda.
More than 95% of the firm’s sales happen through its own website, Chopra said. The company will continue to invest in its own website, he said, adding: “We do not rely on ecommerce channels.”
The firm also operates two stores in Los Angele and has partnerships with various retailers across its markets. ET reported last year on a broader trend among D2C brands seeking to establish a physical presence through omni-channel expansion in India.
The Ayurveda Experience made Rs 259 crore in revenue in fiscal 2023, and is aiming to grow that to Rs 350 crore in FY24, Chopra said. In FY23, it posted a net loss of Rs 17 crore.
SOURCE & CREDIT: THE ECONOIMC TIMES