BabyOrgano Raises INR 20 Cr To Boost Product Innovation

D2C Ayurveda brand BabyOrgano has raised INR 20 Cr ($2.3 Mn) in a Pre-Series A funding round led by RPSG Capital Ventures, with participation from existing backer Sauce.vc.

The startup plans on utilising the fresh capital to drive product development, advance marketing capabilities and expand operational infrastructure.

Founded in 2020 by Riddhi Sharma, BabyOrgano is a wellness brand that offers Ayurveda-based products such as cough syrup, roll on, lip balm, immunity booster, milk mixes, among others. Its target customer segment is children in the 10-15 age bracket.

Prior to this round, it had raised $715K in its seed round from Sauce.vc and $150K in its pre-seed round from DeVC.

The startup claims to have served over 1 Mn customers since inception. Based on its website, it delivers more than 1,000 orders per day via its D2C platform as well as ecommerce and quick commerce apps such as Amazon, FirstCry, Flipkart, Blinkit, Tata 1mg, and such.

With the fresh capital, the startup is eyeing to hit a revenue of INR 100 Cr by FY27. As per its last disclosed financials for FY24, the company’s total revenue stood at INR 7.3 Cr while its loss for the fiscal stood at INR 38 Lakh. 

The startup is now hoping to capitalise on the ongoing shift in consumer preference towards Ayurveda-based options. To note, the Indian market has had very limited options when it comes to such products designed specifically to boost kids’ immunity. Emerging brands like BabyOrgano have identified this opportunity and have been innovating new Ayurvedic wellness edibles for children to keep them healthy.

The market size of Indian ayurvedic products is expected to reach about INR 3.21 Lakh Cr by 2032, growing at a CAGR of 17% from 2024. Given the lucrative opportunity, investors are lining up to back startups operating in the Ayurveda-based wellness category. 

For instance, Kapiva recently raised $60 Mn in its Series D round to boost its research and development (R&D) and manufacturing capabilities. While a plethora of Ayurveda-based wellness brands Wellbeing Nutrition and Mosaic Wellness have come to prominence in recent times, the sector is still dominated by bigger companies like Dabur and Patanjali.