Premium health and nutrition brand Suwasthi has raised Rs 2 crore from revenue-based financing platform Velocity. This round of raise will be deployed towards working capital for Suwasthi.
Started in 2017 by Kunwar Singh, Suwasthi started in the beauty and personal care segment and has since then pivoted to provide healthcare solutions to people with diabetes.
The D2C brand claims to reached an annual revenue run rate of Rs 2 crore by the financial year 2019. Post-Covid Suwasthi decided to launch its website and in the same financial year, clocked a revenue of Rs 6 crore.
Velocity.in, a Bengaluru-based fintech, offers revenue-based financing at an interest rate of 4-8% as a replacement of VC funds and traditional bank debt for Indian e-commerce businesses.
Since commencing operations in early 2020, the firm has worked with over 2,500 e-commerce businesses. With Rs 3,300 crore of fundable revenues connected to Velocity’s platform, the fintech has already processed over 1,000 D2C investments. Its portfolio companies include Power Gummies, SUMOOR, Crossbeats, Green Soul, WallMantra, BellaVita, WaterScience and Setu among others.
Velocity also raised $30 million in 2021 across seed and Series A round from Peter Thiel’s Valar Ventures and others.
Revenue of Suwasthi:-
Speaking about the growth of his company and recent funding he raised from Velocity, Kunwar Singh said, “When we first started, we were focused on marketplaces. But we quickly realised that we could make a bigger impact by selling our products on our website and connecting with our potential customers. The fund raise from Velocity will help us with rapidly scaling our production and manufacturing while maintaining our high-quality standards.”
Speaking about the round of financing, Atul Khichiriya, Co-founder of Velocity, said, “We’re excited to partner with Suwasthi. With a repeat customer rate of 70% and more than 90% of orders being cash-on-delivery, they boast a sustainable and scalable business model. With strong sectoral tailwinds and impressive revenue, there’s no limit to the amazing growth potential for Suwasthi.”
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