A surge in preventive healthcare awareness following the pandemic has fuelled strong demand for nutraceuticals, propelling startups in the segment to robust financial performance in FY25. Consumers are increasingly turning to daily supplements in the form of gummies, capsules, powders, syrups and gels, resulting in rapid category expansion and significant investor interest.
According to Tracxn data, there are currently 565 active companies in the nutraceuticals tech space, compared with only a small cluster a few years ago. The startup ecosystem has drawn funding from leading venture capitalists, including Fireside Ventures, 3one4 Capital, Alteria Capital, Wipro Consumers, Sharpp Ventures, Stride Ventures and B Capital. Startups have collectively raised $180.3 million in under three years, with brands such as Kapiva, The Good Bug, Plix, Gynoveda, &Me, Nutrova, Uparkama, The Power Gummies, Mojocare, Bright LifeCare, Azani and Zeroharm gaining visibility.
The momentum is reflected in their books. Nutrition and supplement marketplace HealthKart recorded more than a threefold jump in net profit to Rs 120 crore in FY25. The Temasek-backed company had turned profitable in FY24 with a net profit of Rs 36.7 crore, marking a 227% year-on-year rise. Clean-label brand Wellbeing Nutrition closed FY25 with around Rs 170 crore in revenue, registering more than 100% annual growth, while HUL-owned Oziva reported a 2.5x increase in operating revenue and narrowed losses by 90%. Kapiva is currently operating at an annual revenue run rate of about Rs 550 crore, compared with roughly Rs 350 crore in FY25.
Strong results were visible even in FY24. Sports nutrition brand Nutrabay turned profitable last year and reached an annual revenue run rate of Rs 100 crore, up 45% from FY23. Setu Nutrition, backed by Sania Mirza, reported six-fold growth. BigMuscles Nutrition told Fe in an interview earlier that it is targeting Rs 300 crore in revenue for FY25.
What do analysts say?
According to analysts, the core drivers of growth have shifted from heavy discounting to sustained consumer demand. “Revenue growth has outpaced expense increases for most supplement startups, driven by rising health-consciousness among consumers and strong repeat purchase behaviour. While advertising and promotion spends have grown to capture new markets, their increase has been slower than revenue, improving return on ad spend and overall efficiency,” said Tiyasa Khanra, partner, Deloitte India.
She added that brands have successfully reduced discounting levels without affecting volume growth, pointing to healthy organic demand. “Margins have further benefited from lower logistics costs and softening commodity prices. With better absorption of fixed costs and disciplined cost control, many players are on a clear trajectory toward profitability this FY, aligning with investor and strategic priorities,” she said.
Sports nutrition players witness tailwinds from fitness economy
Sports nutrition players continue to witness tailwinds from the fitness economy. Nutrabay said its private label had grown 80% in the past year, driven by demand for affordable protein-based products. Parag Milk Foods, which reported its highest-ever revenue of Rs 1,008 crore in Q2FY26, said its high-protein brand Avvatar posted a 79% year-on-year rise in the quarter. “Over the past couple of years, Parag’s new age business, which includes Pride of Cows and Avvatar, has built a strong and rapidly expanding consumer base. They constitute 9% of the overall business,” said Akshali Shah, executive director, Parag Milk Foods.
However, analysts said that the market could soon reach saturation in certain categories. “The startups most at risk are those offering copycat formulations, chasing trends without a clear identity, and relying only on paid marketing,” said Ujwal Sutaria, founder and general partner, TDV Partners. Competition is expected to intensify further as large pharmaceutical, FMCG and Ayurveda players scale operations. “Crowding will increase, especially as pharmaceutical, FMCG, and Ayurveda majors expand aggressively. But brands with clear hero SKUs, repeat rates above 30–40%, and tight contribution margin discipline will continue growing profitably,” Rajeev Kalambi, general partner, Cactus Partners, said.