VAHDAM India: Direct-to-Consumer Tea Brand Achieves Profitability

VAHDAM India has achieved profitability in the fiscal year ending March 2025. The direct-to-consumer (D2C) tea brand also recorded nearly 20% growth in revenue year-on-year as it expanded its presence in global markets and introduced new products internationally.

According to its consolidated financial statement filed with the Registrar of Companies (RoC), VAHDAM India’s operational revenue increased by 19% to Rs 267.5 crore in FY25, up from Rs 225.2 crore in FY24. VAHDAM, which operates in e-commerce, offers a range of teas, spices, and superfoods, sourcing ingredients directly from farms across India. The products are marketed not only in India but also in essential international markets like the US, Canada, and Europe. Sales from these offerings represent the main source of revenue for the company.

Strong Growth in Exports

Exports to the US, Europe, and other markets played a crucial role in contributing more than 95% of total revenue, amounting to Rs 254.5 crore. This marks a 21% increase from Rs 210 crore recorded in FY24. In contrast, revenue from sales within India was considerably lower at just Rs 12 crore.

The company managed to earn Rs 5.9 crore in non-operating income, bringing its total revenue for FY25 to Rs 273.4 crore.

Cost Structure and Profitability

Transportation emerged as the primary cost driver for the D2C brand, accounting for 27% of total expenses, largely due to the reliance on international sales. This cost increased by 6% in FY25, reaching Rs 71.5 crore. Advertising expenses also saw a substantial rise, climbing 16% year-on-year to Rs 58 crore.

The cost of materials remained stable at Rs 48 crore, while employee expenses saw a reduction of 6% to Rs 27 crore. Commissions paid to selling agents amounted to Rs 21.4 crore, and additional overhead costs including rent, legal fees, and miscellaneous expenses accumulated to another Rs 42 crore. This brought the overall expenses to Rs 268.2 crore in FY25, reflecting a modest 6% increase compared to FY24.

Ultimately, the revenue growth enabled the firm to achieve profitability, reporting a net profit of Rs 5.2 crore, a significant turnaround from a loss of Rs 17.7 crore in FY24. The company’s return on capital employed (ROCE) and EBITDA margin also turned positive, standing at 4% and 2.55%, respectively.

Financial Health and Funding

As of March 2025, VAHDAM India reported current assets totaling Rs 144.5 crore, which includes Rs 64.4 crore in cash and bank balances. The startup data intelligence platform indicates that VAHDAM India has secured over $40 million in funding to date, including a recent $3 million round led by SIDBI Venture. Notable investors include Fireside Ventures, Sixth Sense Ventures, and IIFL Asset Management.