Kapiva’s Revenue Growth and Financial Insights for FY25

Kapiva, an Ayurveda wellness brand, experienced significant revenue growth in the fiscal year ending March 31, 2025, with a nearly 50% increase compared to the previous year. However, the rise in costs during this period resulted in a 23% rise in the company’s losses.

Detailed Financial Performance of Kapiva

The revenue from operations for Kapiva surged by 50% to reach Rs 342 crore in FY25, up from Rs 228 crore in FY24, as indicated in the consolidated financial statements obtained from the Registrar of Companies (RoC). Established in 2015, Kapiva focuses on Ayurvedic nutrition, offering natural and organic products across various categories, including diabetes, hypertension, liver health, hormonal balance, wellness, energy, and sports nutrition. The sales from these products constitute the company’s primary revenue source. When accounting for non-operating income of Rs 7 crore, Kapiva’s total income for FY25 was recorded at Rs 349 crore.

Key Expenses Impacting Profitability

For this direct-to-consumer (D2C) brand, advertising and promotional costs represented the most substantial expense, making up 45% of total expenditures. This category increased by 53% to Rs 188 crore in FY25 from Rs 123 crore in FY24. Additionally, the cost of materials consumed rose by 43% to Rs 97 crore, contributing around 23% of the total costs. Employee benefit expenses went up by 28% to Rs 59 crore, while transportation expenses amounted to Rs 22 crore. Legal costs doubled to Rs 16 crore, and other overheads added Rs 36 crore during the year. In total, the company’s expenses increased by 44%, reaching Rs 418 crore in FY25, compared to Rs 290 crore in FY24.

Losses and Financial Ratios

Kapiva’s net loss expanded by 23%, amounting to Rs 69 crore in FY25, compared to Rs 56 crore in FY24. The company’s return on capital employed (ROCE) and EBITDA margin were reported at -51.41% and -20.88%, respectively. On a unit basis, Kapiva spent Rs 1.22 to generate each rupee of revenue, which is an improvement from the Rs 1.27 spent in FY24. Cash and bank balances amounted to Rs 139 crore, while current assets were valued at Rs 199 crore during the same period.

Funding and Future Outlook

As per various sources, Kapiva has successfully raised a total of $90 million in funding to date, including $60 million raised in Series D, led by 360 ONE Asset and Vertex Growth. While it is easy to attribute some of the increased spending to the pursuit of growth metrics following funding, the overall situation for Kapiva appears concerning. There is hope that expenditures on advertising, legal services, and other overheads can be controlled. However, the company’s growth trajectory has not matched expectations given the level of investments made. The material costs at 23% remain relatively low in comparison to other competitors in the industry, where costs often exceed 30%. Moreover, the focus on a Shilajit-centric portfolio raises questions about the actual content and efficacy of this well-known ingredient in their products. Although Shilajit offers certain benefits, its impact has not shown the expected results for Kapiva.