Aesthetic Nutrition Pvt. Ltd, which sells chewable dietary supplements under the brand Power Gummies, said on Wednesday it has raised funding in a pre-Series A round led by consumer-focused venture capital firm DSG Consumer Partners.
Power Gummies said in a statement the company will use the funds to launch new products, expand its operations and hire people. It did not provide financial details of the transaction.
DSG Consumer, which has backed companies such as Oyo, Chai Point, Epigamia, GOQii and Veeba Foods, typically invests $500,000 to $2 million in a company.
Separately, in an interaction with VCCircle, Power Gummies founder and CEO Divij Bajaj said the startup had received interest from tech-based venture capital firms as well but went with DSG Consumer because of its reputation of scaling consumer brands and “good valuation” on offer.
Bajaj is a graduate of Delhi University’s Kirori Mal College. Prior to starting Power Gummies, he had co-founded Just Dakhila Pvt. Ltd, a platform to help parents and students search for schools.
DSG Consumer’s investment in Power Gummies comes just months after VCCircle reported that the startup had raised $100,000 (Rs 70 lakh) from Alfa Ventures in its seed round of funding.
The New Delhi-based startup, which was founded in March 2018, seeks to tap into the nutritional over-the-counter healthcare market with its products. Power Gummies, which are vegetarian products, contain 10 vitamins along with biotin and folic acid which provide nutrition for hair and nail-care needs. It sells its products through its website and other e-commerce sites such as Amazon, Flipkart and Nykaa.
Deepak Shahdadpuri, managing director of DSG Consumer, said the vitamin and health supplements market is ripe for disruption and presents a huge market opportunity in India.
The company has shown a strong product market fit and achieved an annual revenue run rate of over Rs 8 crore within the first year of launch, he added.
India's nutraceutical supplements market is estimated at $5 billion and is projected to grow at 20% compound annual rate between 2018 and 2023, the statement noted.
Deals in the segment
Nutritional foods, supplements and drinks makers have attracted investor interest as they seek to tap into a growing class of health-conscious Indians with rising disposable income.
Another DSG Consumer-backed company RAW Pressery, which makes cold-pressed juices that are perceived to be healthier, raised fresh capital from a foreign investor last year.
Last year, Bengaluru-based sports nutrition brand DAAKI raised an undisclosed amount in angel funding from Rohan Agila. A top executive at Baring Private Equity India quit and launched a startup that makes healthy beverages, VCCircle reported in September last year.