Saurabh Kapoor notes that the brand is looking at achieving profitability in the fourth quarter of the next financial year (Q4FY27)
Backed by healthy gross margins, high customer retention and a rapidly growing consumer base, Wellbeing Nutrition, a clean-label nutrition brand, is eyeing to cross Rs 600 crore in revenues by the financial year 2027, its Co-founder Saurabh Kapoor told BW Retail World.
“We are looking at closing at about Rs 300 to 350 crore by the end of the current financial year, and for the next year, we are looking at that Rs 350 crore going up to about Rs 600 crore. We are also looking at achieving profitability by FY27,” Kapoor said in an interaction. The brand is looking to tap the opportunity presented by quick commerce, resulting in greater repeat purchases.
Distribution Approach And Expansion Plans
While sharing that around 65 to 70 per cent of the brand’s total sales come from online channels, Kapoor agreed that consumers still need to read the back of the label for them to start trusting the products in their category.
“About 65 to 70 per cent of our sales come online. We will be a digital-heavy brand; all our marketing happens online. We are yet to get into offline marketing. At the early stage, within about one to two years of launch, we decided to go offline because we felt the category is such that people still require trust. They still need to see the product,” he emphasised.
Currently present across 4,000 outlets, the brand is looking to significantly increase its reach over the next two years. He said, “We are looking at doubling this reach, about moving to about 7,000 to 8,000 odd outlets.” Explaining that quick commerce is gaining momentum, the co-founder commented that it already accounts for around 10 to 15 per cent of the brand’s overall business within six months. “While the acquisitions happen through Amazon and direct-to-consumer (D2C), the repeat purchase behaviour comes through quick commerce.”
While the brand is present across over 20 countries, the focus is more around the United States (US) and, United Arab Emirates (UAE). Kapoor added that they are looking at the European markets as well, going ahead. The intent is to build online first and then take the offline route once the demand grows, he mentioned.
“The expansion plans over the next one year would be to expand US all across online and offline and also look at the European markets, which is the United Kingdom (UK) and some of the other countries,” he noted.
Consumer Base And Market Segmentation
Kapoor noted that by putting every channel together, the brand has interacted with around two to three million consumers who have purchased from the brand. On the market segmentation aspect, the co-founder shared that they do not look at metros and non-metros as such.
“Essentially, we call ourselves a TG, which is an India 1 TG. We do not define ourselves as tier one or tier two. I would say the mix is typically 50 to 55 per cent towards tier one, 30 to 35 per cent tier 2 and then a little bit of tier three. But I think the TG or India 1 audience is the one which is more into health and wellness, fitness savvy, with a certain per capita income,” Kapoor added.
The co-founder noted that the brand looks at more consumers who have the propensity to consume its products, have the lifestyle and are into fitness, and also digitally active. “60 per cent of our current, month-on-month revenues actually come from our repeat customers. That is the biggest unique selling proposition (USP) and highlight of our brand,” he explained.
Evolving Indian Market
With rising competition in the nutraceutical and dietary supplement market, Kapoor said that the brand focuses on adopting a science-based approach coupled with technology to bring in innovation in terms of getting the best output.
“We positioned ourselves as a brand which is strongly backed by science, and ingredients which are sourced globally across the world. Every ingredient that we source has to have a clinical study or a clinical backing behind it; only then do we proceed with it and use it for our formulations,” Kapoor explained.
“The market has definitely evolved from being reactive to more proactive. Everyone now wants to be in the health and fitness space and that is just growing,” he added while shedding light on the evolving consumer behaviour in the nutrition space that consumers have become much more educated and aware over the last three to four years.
