Bengaluru, 29th November 2022: Premium health and nutrition brand Suwasthi has raised 2 Crores from Velocity.in, India’s largest revenue-based financier. Suwasthi was started in 2017 by Kunwar Singh with a simple vision – to tap into 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. This round of raise will be deployed towards working capital needs for Suwasthi.
The D2C brand has seen incredible success since its launch and reached an annual revenue run rate of 2 Crores by the financial year 2019. Post-Covid Suwasthi decided to launch its website and in the same financial year, clocked a revenue of Rs 6 Crores. 2022 is looking even more successful for Suwasthi, with a projection of tripling the revenue run rate. Though most brands spend 20-40% of their revenues on marketing, Suwasthi has spent little to no money on performance marketing. Powered by a premium product and excellent customer service, the brand flaunts a repeat customer rate of over 70%. The brand’s primary customer acquisition is via tele-calling, unique to the D2C Ecommerce ecosystem.
“We want to bring quality health and nutrition products to our consumers in Tier 3 & 4. The key to our success is that the team at Suwasthi provides holistic solutions to people ailing from diabetes in the form of regular follow-ups, lifestyle changes and further product updates.” said Kunwar Singh, Founder, Suwasthi.
Suwasthi’s recent move from outsourced manufacturing to setting 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.
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 Millennials 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 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 realised that we could make a bigger impact by selling our products on our website and connecting with our potential customers. The fund raise from Velocity will help us with rapidly scaling our production and manufacturing while maintaining our high-quality standards.”
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.”
Velocity.in, 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.