Vertex Holdings has backed three rounds for India’s Kapiva, a D2C ayurveda beauty and wellness brand, in the past five years. It signals not only confidence in the growth of the segment, but an understanding that this is one consumer category where winners require scientific validation.

“Kapiva has built its brand based on consumer trust, which is backed by evidence, not claims,” said Ben Mathias, a managing partner at Vertex Ventures Southeast Asia and India.

“Their research-led approach guides every formulation, from ingredient selection to validation. This is important to the millennial and gen Z consumer who tend to be more discerning and information-driven in their choice of brands.”

The most recent investment saw Vertex Growth join 360 One Asset to co-lead a USD 60m Series D round, comprising USD 28m in primary capital and a USD 32m secondary component. Vertex Ventures Southeast Asia and India also participated alongside fellow existing backers 3one4 Capital. Fireside Ventures exited.

Ancient roots

The ayurveda industry is founded on traditionally inherited knowledge and based on empirical evidence. Claims of efficacy – including disease-curing claims – are supported by a mix of historical practice and scientific research. A lack of modern scientific evidence has led to ongoing concerns about the validity and safety of the products.

Vertex sees Kapiva as differentiated in this space. The company was set up in 2016 by Ameve Sharma, formerly of the Baidyanath Group, an established ayurvedic products maker, and Shrey Badhani. Senior executives have previously worked for the likes of Uniqlo India, Myntra, and Disney+ Hotstar, now JioHotstar.

The product offering spans health supplements, skin and hair care products, and organic foods. Services include health advice, personalised diet plans, and lifestyle recommendations, including yoga.

“In any health and wellness business, claims need to be backed with results. We do our diligence to assess both the capability of the team and the quality of the products and services,” Mathias said.

The fresh capital will focus on R&D, manufacturing capabilities, and building a strong health-tech ecosystem that integrates digital consultations, personalised wellness journeys, and data-led customer engagement.

3one4, Mohandas Pai’s Family Office, Madhu Kela, and Gits Foods joined a Fireside-led Series A of USD 2.5m in 2019. This was followed by a USD 11m Series B featuring Vertex, 3one4, Fireside, and Jetty Ventures in 2021, as well as a USD 10m Series C from Vertex, 3one4, and OrbiMed last year.

Mathias said its bet on Kapiva has played out well since its first investment, noting the company has achieved 80% year-on-year growth over the last three years to reach an annual revenue run rate (ARR) of INR 5bn (USD 56.3m). He estimates the market for nutraceuticals and nutrition in India to be almost USD 10bn and growing at 7%-8% a year.

Consumer story

After more than 5,000 years of history as a system of medicine, ayurveda’s relatively sudden emergence as a modern consumer category in recent years underscores multiple trends in India’s consumer space. These include an increasing awareness about the need to stay active and healthy, older people wanting to retain youthfulness, and vegetarians looking for more protein intake.

The commonality among these groups is their growing demand for supplements such as fibre, magnesium, and vitamins to keep up with these needs.

“Our thesis was driven by increasing premiumization of consumption, and focus on health and wellness by a younger, more discerning customer base,” said Mathias.

“As we saw in Kapiva, you can build a new brand in a category that has been around for decades, in this case ayurvedic supplements, and either take market share from the traditional incumbents or just expand the market by attracting a new set of customers who only shop on digital channels.”

Kapiva has established an omnichannel model, with growing traction offline as well. It has a presence across 40,000 stores in India with formats ranging from general and modern trade to pharmacy.

Consumer is one of Vertex’s core themes. Investments in India include online meat and seafood retailer Licious, D2C beauty brand Pilgrim, home appliance brand Nuuk, and demi-fine jewellery brand Palmonas in jewellery.

In Southeast Asia, it has invested in Vietnam-based D2C men’s apparel brand Coolmate, Singaporean chocolate brand Janice, Indonesian food and beverage operator DailyCo, Malaysian coffee chain Koppiku, and multi-brand D2C company RPG.

“In all these emerging economies, consumption is growing as the population is getting richer. Consumption is getting more digital, and there is a certain segment of the population exclusively doing their discovery and shopping online,” said Mathias. “Hence, a digital-first brand like Kapiva fits right into our investment thesis and strategy.”