Ayurveda start-up, The Ayurveda Company (T.A.C) said that it has posted a revenue surge of 500 per cent from March to October 2022. The D2C ayurveda company, which closed FY22 at Rs 60 crore, aims to extend its retail presence to tier-II and -III cities, targeting 50 exclusive stores by fiscal year-end. The company has already forayed in Dubai and is set to expand across the MENA region.
With a current Annual Recurring Revenue (ARR) of Rs 120 crore, TAC is working towards achieving breakeven by March 2024 and aiming for profitability before Diwali in the same year. “In the past two years, TAC has undergone a remarkable evolution, positioning itself as a true leader in the realms of Direct-to-Consumer (D2C), Ayurveda, and e-commerce. The upcoming year heralds an exhilarating chapter for TAC as it unveils an array of innovative products- reflecting the company’s commitment to Ayurvedic principles and innovative solutions to address modern beauty and wellness needs,” the company said.
In terms of demand, while tier-I cities contribute to 35 per cent of the demand, tier-II markets drive the momentum with a 40 per cent share and tier-III and beyond regions contribute to 25 per cent of the demand. Geographically, the North and West regions each account for 30 per cent of the demand, followed closely by the South at 25 per cent and the East at 15 per cent.
“The current market size of Ayurvedic wellness products in India stood at Rs 626 billion in 2022, showcasing the growing opportunity within the sector. In alignment with the Ayush Sector Vision 2047, we aim to be a torchbearer of Ayurvedic principles, making them accessible and relevant to the modern world. As our local and global presence expands, we steadfastly uphold our dedication to honouring local regulations and preferences, fueled by an overarching aspiration to establish T.A.C as a renowned Ayurvedic emblem, disseminating the timeless wisdom of Ayurveda to a worldwide audience,” said Param Bhargava, Co-Founder, T.A.C – The Ayurveda Company.
In terms of consumption, 50 per cent of the company’s consumer base lies in the age group of 18-24 years. The 25-34 age bracket follows closely, accounting for 30 per cent of the demand. Consumers aged 35 and above contribute 20 per cent to the demand.
In terms of sales channels, while online sales capture 40 per cent of the market share, offline channels maintain their significance by accounting for a larger 60 per cent share, reflecting the continued importance of traditional retail avenues.
Founded by Shreedha and Param, the company has secured investments, including a seed round led by Azim Premji’s Wipro Consumer Care Ventures and a Pre-Series A round with participation from Kajal Aggarwal and Sixth Sense Ventures.