Premium health and nutrition brand Suwasthi has raised 2 Crores from Velocity, India’s largest revenue-based financier.
Suwasthi was started in 2017 by Kunwar Singh with a simple vision – to tap into the opportunity in the growing D2C space. The brand started in the beauty and personal care segment and has since then pivoted to provide healthcare solutions to people with diabetes.
The D2C brand has seen incredible success since its launch just a few short years ago. Their innovative product range, spanning skincare to health & nutrition, has allowed them to reach an annual revenue run rate of 2 Crores within 2 years. Post-Covid Suwasthi decided to launch its website in August 2021. In the same financial year, they clocked a revenue of Rs 6 Crores. This coming financial year 2022 is looking even more successful, with a projection to triple their revenue run rate.
Though most brands spend 20-40% of their revenues on marketing, Suwasthi has spent little to no money on Facebook or other campaigning in recent years. And yet, the brand has a repeat customer rate of over 70%. The secret to their success lies in the excellent customer service provided to their target audience. They reach all customers via tele-calling, take orders, and deliver products straight to their doorsteps.
“We want to bring quality health and nutrition products to our consumers in zones 3 & 4. The key to our success is that the team at Suwasthi not only sells products, but they also provide holistic solutions to people opting for diabetes healthcare by regular follow-ups on the improvements and further product updates.” said Kunwar Singh, Founder, Suwasthi.
Suwasthi’s recent move from outsourced manufacturing to set up its own manufacturing plant has put them on an exponential growth trajectory. This change has allowed them to keep a closer eye on quality control, as well as switch to a contract-based farming model with others.
Speaking about the growth of his company and recent funding he raised from Velocity, Kunwar Singh said “When we first started, we were focused on marketplaces. But we quickly realized that we could make a bigger impact by selling our products on our website and connecting with our potential customers. Our focus now is on rapidly scaling our production and manufacturing while maintaining our high-quality standards.”
“We decided to go with revenue-based financing so that we could retain ownership of our company. We didn’t want to give away any equity to a VC. The funding from Velocity validates our business’s strength and gives us the boost we need to scale our operations. We’ll use this funding to finance our manufacturing as we scale our production efforts!” he added.
Growing awareness in India about health and wellness adds further fuel to Suwasthi’s’ growth story. As per study by Numr Research, about 33 percent of Millenials spent more than Rs 4000 on their health and wellness every month. The Indian health and wellness market is expected to exhibit a CAGR of 5.45% during 2022-2027.
Speaking about the round of financing, Atul Khichiriya, Co-founder of Velocity, said, “We’re excited to partner with Suwasthi! With a repeat customer rate of 70% and more than 90% of orders being cash-on-delivery, they boast a sustainable and scalable business model. With strong sectoral tailwinds and impressive revenue, there’s no limit to the amazing growth potential for Suwasthi.”
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Velocity, a Bengaluru-based fintech, is India’s largest revenue-based financier. Since commencing operations in early 2020, the fintech has worked with over 2,500 e-commerce businesses. With Rs 3,300 crores of fundable revenues connected to Velocity’s platform, the fintech has already processed 1000+ D2C investments.