The revenue of this organic health foods startup was $ 3 million in 2018, $ 24 million in two years, know how?
The food industry and consumption (consumption) patterns are undergoing a huge transformation. The reason for this is the increasing awareness among people. Consumers now require more organic products and genetically modified much less. Rishabh Chokhani, Founder, Naturevibe Botanicals Keeping this in mind, 31-year-old Rishabh Chokhani, whose family was in the pharmaceutical manufacturing business, decided to set up his own startup, Naturevibe Botanicals in 2017.
Rishabh says, “People interested in following a healthy, nutritious lifestyle should choose organic botanicals (organic flora) over traditionally produced herbs because not only do they add flavor to your food, but They are full of tremendous medicinal properties, which prevent and treat a myriad of diseases, while the traditionally produced herbs And as a result of the spices the plants are mixed with pesticides and synthetic chemical fertilizers, which can contaminate the product and be a health hazard. ” The organic root Rishabh was quite obese at first but he developed a passion for a healthy life and got fit. He also wanted to inspire others to adopt a healthy lifestyle by starting a venture in the organic food industry. He worked in his family’s pharma business.
He says, “Our brand deals in health food and organic products that help people lead clean and healthy lifestyles as well as being GMO and chemical-free. Our products are sourced directly from organic farmers who use sustainable farming practices. ” The Mumbai-based startup sells organic health products like Superfoods (Wheatgrass and Chia Seeds), Ayurveda Capsules, Essential Oil, Spices & Grains, and Saffron and Coconut Flour. According to Agademi, there are 650,000 farmers in organic farming in India. Rishabh states that India has the largest wild harvest area for organic growers globally with over 80,0000 organic farmers. In addition, India ranks ninth in organic farming. The Indian organic food market is projected to grow by more than 25 percent, with a total of 0.4 percent of the arable land in the country designated for organic farming, providing a wide scope for expansion. He explains, “A variety of our health products have amazing medicinal properties, which prevent and treat many diseases. As we deal in health food categories such as herbal powders, Ayurveda capsules and superfoods, we promote natural solutions for preventive care. ” Also Read is providing special footwear and clothing for long and big legged men. This e-commerce startup business model NatureWeb Botanical sells 98 percent of its products online and is a B2C brand. The startup purchases 1,800 organically produced content, double the figure from 2018.
After this, they begin the production process of their products. Says Rishabh, “We also place our products in some retail stores in the US.” The road to success was fraught with many challenges. He says, “The main issue at the time of building this business was the underdeveloped supply chain. In addition, the constant fear of low biological production yields due to primitive agricultural processes to prevent pest attacks. Another major challenge in procurement for organic farming is the labor costs and training required to maintain the farm, which costs a great deal. ”
NatureWeb raised $ 4 million from Eurasia Organics and the total money invested in the startup is approximately $ 5 million. Rishabh said that its revenue was $ 3 million in 2018, which has increased to $ 24 million in 2020 after two years. The 80-member team sells only on its website and online on Amazon. Initial investment was used to purchase raw materials and machinery for the startup’s manufacturing facility near Mumbai. These funds were also used in marketing. According to a report jointly created by Future Plan Assocham and EY, the organic products market in India is growing at a CAGR of 25 percent and is expected to touch Rs 12,000 crore by 2020.
NatureWeeb offers botanical organic foods and health products that are free of toxic pesticides, growth hormones, antibiotics, synthetic fertilizers, GMO-free and have all the necessary certifications. The startup competes with 24Mantra Organic and Organic Tattwa.
Rishabh explained that once the threat of corona virus passes, the startup wants to expand its business globally and start exporting products to Europe and Australia. Also Read This 60 year old brand has adopted a youth based approach to cross 150 million turnover