Ayurveda-based wellness and nutrition brand Kapiva has closed FY25 with a sharp jump in revenue, supported by an aggressive push on advertising and brand building. The direct-to-consumer startup recorded Rs 342 crore in revenue from operations during the financial year ended March 31, 2025, marking a 50% year-on-year growth compared to Rs 228 crore in FY24.
Founded in 2015, Kapiva has built its business around Ayurvedic and plant-based solutions catering to lifestyle conditions such as diabetes, thyroid imbalance, liver health, hormonal wellness, digestion, immunity, and sports nutrition. The company’s strong revenue growth in FY25 reflects rising consumer demand for natural health products and the brand’s expanding presence across online platforms and marketplaces.
Along with operating revenue, Kapiva also reported additional income during the year, taking its total income to nearly Rs 349 crore. Product sales continued to remain the primary driver of overall earnings.
Kapiva’s Advertising Emerges as the Biggest Expense
FY25 clearly stood out as a year of heavy marketing investments for Kapiva. The company spent Rs 188 crore on advertising and promotions, an increase of around 53% compared to the previous year. Advertising alone accounted for nearly 45% of Kapiva’s total expenses, making it the single largest cost head.
The elevated marketing spend highlights Kapiva’s strategy to scale quickly in a highly competitive wellness and nutraceuticals market. The Indian health and wellness space has seen intense competition from both legacy Ayurvedic brands and newer digital-first startups, pushing companies to spend aggressively on customer acquisition and brand recall.
Rising Costs Impact Profitability
While top-line growth remained impressive, Kapiva continued to face pressure on profitability due to rising overall expenses. Total expenditure increased to Rs 418 crore in FY25, up from Rs 290 crore in FY24, reflecting a sharp expansion across multiple cost components.
The cost of materials consumed rose to Rs 97 crore, while employee benefit expenses climbed to Rs 59 crore as the company continued to strengthen its teams across operations, sales, and marketing. Logistics-related expenses, including transportation, stood at Rs 22 crore. Legal and professional charges also saw a notable rise, touching Rs 16 crore, while other overhead costs added further pressure on the balance sheet.
As a result, Kapiva’s net loss widened to Rs 69 crore in FY25, compared to Rs 56 crore in the previous year. Although losses increased, the company showed a marginal improvement in efficiency, spending Rs 1.22 to earn every Rs 1 of operating revenue, compared to Rs 1.27 in FY24.
Cash Position Provides Stability
Despite continued losses, Kapiva maintained a relatively healthy liquidity position. The company ended FY25 with cash and bank balances of Rs 139 crore, while its current assets stood at around Rs 199 crore. This financial cushion is expected to support ongoing investments in marketing, product development, and supply chain expansion.
Kapiva has raised $90 million in funding so far, including a large Series D round that helped strengthen its balance sheet and supported its aggressive growth plans.
Outlook for FY26
Kapiva’s FY25 performance mirrors a broader trend among Indian D2C brands, where revenue growth is prioritised alongside heavy marketing investments. While sustained losses remain a concern, the brand’s improving unit economics and strong revenue momentum signal gradual progress toward operational efficiency.
Going forward, how Kapiva balances marketing spends with profitability will be closely watched, especially as investors increasingly focus on sustainable growth and financial discipline across India’s startup ecosystem.