Ayurveda-focused wellness brand Kapiva reported a strong FY25 performance, with operating revenue rising 50% year-on-year to Rs 342 crore, driven by expanded distribution across e-commerce and intensified brand-building efforts. Total income, including other receipts, reached about Rs 349 crore for the year ended March 31, 2025.
Business model and market positioning
Founded in 2015, Kapiva markets Ayurvedic and plant-based formulations for lifestyle and metabolic health, including products for diabetes support, thyroid balance, liver function, hormonal wellness, digestion, immunity and sports nutrition. The company’s growth reflects growing consumer demand for natural health products and an increasing shift to online marketplaces and direct-to-consumer channels.
Marketing spend becomes the largest expense
Kapiva invested heavily in advertising and promotions in FY25, spending Rs 188 crore — about 53% higher than the prior year. Advertising accounted for nearly 45% of the company’s total expenses, underlining a deliberate strategy to accelerate customer acquisition and brand recall in a crowded nutraceutical and wellness market.
Rising costs weigh on profitability
Total expenditure rose sharply to Rs 418 crore in FY25 from Rs 290 crore in FY24, reflecting higher input costs and expanded operating activity. Cost of materials consumed increased to Rs 97 crore, employee benefit expenses rose to Rs 59 crore as the company scaled teams across operations, sales and marketing, and logistics costs were around Rs 22 crore. Legal and professional fees also climbed to about Rs 16 crore.
These cost pressures widened Kapiva’s net loss to Rs 69 crore in FY25, up from Rs 56 crore a year earlier. Nevertheless, the company posted a modest improvement in operating efficiency, spending Rs 1.22 to earn every Rs 1 of operating revenue compared with Rs 1.27 in FY24.
Balance sheet and funding
Kapiva ended FY25 with a comfortable liquidity buffer, holding cash and bank balances of Rs 139 crore and current assets of roughly Rs 199 crore. The company has raised about $90 million to date, including a sizeable Series D infusion that strengthened its financial position and underpinned expansion plans.
Outlook
Kapiva’s FY25 results reflect a common trajectory among Indian D2C wellness brands: rapid top-line growth supported by aggressive marketing, accompanied by continued losses as firms prioritise scale. Investors will monitor how Kapiva balances continuing customer-acquisition spending with the path to sustainable profitability, as the broader startup ecosystem places greater emphasis on unit economics and financial discipline.
