Nutrition and Health brand Suwasthi raises 2 crores in funding from a revenue-based financing firm, Velocity.
These funds will be moved toward the working capital for Suwasthi. Additionally, the startup will also use the funds to scale up production and establish more manufacturing units.
Suwasthi’s Background and Revenue
This Delhi-based startup was launched in 2017 by Kunwar Singh. Initially, the firm started its journey with beauty and personal care space. Later on, the journey turned toward providing healthcare solutions to diabetic patients. It is a quality-driven and premium brand which brings innovative products to customers.
The startup claims that they have crossed an annual revenue run rate of 2 Crore by the financial year 2019. Suwasthi launched its website post-covid and fortunately, this D2C brand triumphed with a revenue of 6 crores in the same financial year. The startup aims to triple the revenue run rate in 2022 as it projects 2022 as a successful year for Suwasthi.
Ambitions and Solutions
There are many firms and startups which utilize their 20-40% revenue in marketing. But the same is not the case for Suwasthi. This D2C brand has spent no money on its marketing. It is because the startup provides premium quality products and excellent customer service. Along with this, the company even has over 70% repeat customers.
Mr. Kunwar Singh, founder of Suwasthi said that they want to provide quality health and nutrition products to their customers in tier 3 and 4 cities. He also spoke about the solutions that the Suwasthi team provides for diabetic patients in the form of regular follow-ups and lifestyle changes.
With the latest move of setting up its manufacturing unit rather than outsourced manufacturing, the startup has seen exponential growth. Now, with the support of its manufacturing unit, the company can keep an eye on the quality of its products.
India is 2nd largest nation in terms of population with 60% youngsters. More than 33% of millennials spent at least Rs. 4000 every month on health and personal care products. More and more people are getting aware of their personal care day by day. Undoubtedly, this awareness is like a boon for the company as it offers personal care and nutrition products.
Velocity. in is a fintech firm that offers revenue-based financing. Furthermore, It offers an interest rate of 4-8%. This Bengaluru-based firm is a direct replacement for bank debt and VC funds for E-Commerce businesses in India.
Featured Image Credit : Entrackr
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