Singapore-headquartered venture capital firm DSG Consumer Partners (DSGCP) has led a pre-Series A funding round in New Delhi-based Aesthetic Nutrition Pvt Ltd, which markets and sells chewable dietary supplements under the brand Power Gummies, per an announcement.
Founded in November 2018 by Divij Bajaj, Aesthetic Nutrition will use the proceeds to build its online presence and management team and to launch new products, it said in a statement.
DSGCP, which is investing from its third fund, will work closely with Bajaj and his new product development team to design, develop and launch a portfolio of chewable functional and nutritional supplements, it added.
The company plans to launch a portfolio of vitamin and nutritional supplements in gummy format, without the use of capsules and pills.
Its current brand, Power Gummies, uses vegetarian pectin as an alternative to traditional animal-derived gelatin that is prevalent in gummies worldwide. The products are vegetarian, non-GMO, gelatin-free, gluten-free and free of soy, nuts, dairy, meat and other allergens.
According to Deepak Shahdadpuri, Managing Director of DSGCP, the vitamin and health supplements market is ripe for disruption and presents a huge market opportunity in India. He believes that gummies will be amongst the fastest growing formats within the category.
“Within the first year of launch, the company has demonstrated strong product-market fit and achieved an annual revenue run rate of over Rs80 million,” he added.
The Indian market for nutraceutical supplements is estimated to be $5 billion and is expected to grow at 20 per cent CAGR from 2018-2023. Preference for healthier lifestyle, rising consumer health concerns regarding chronic diseases, and increasing awareness of nutrition deficiency in regular diets are driving the health supplement market in India.
DSG Consumer is an early-stage venture capital fund that makes investments in the consumer-product space mainly in Southeast Asia and India. The firm also invested in YOUvit, one of Indonesia’s fastest-growing vitamin supplement brands in 2018.
The VC firm closed its third venture capital fund at $65 million in August last year, exceeding an initial $50-million target. The firm has deployed almost the entire corpus of its $50-million second fund raised in 2017. DSG’s first fund had raised $12 million.
Since its inception in 2013, DSGCP has backed over 45 startups including OYO Rooms, Zipdial, Redmart, Veeba, Epigamia Greek Yogurt, Raw Pressery, among others. The firm currently manages $200 million of committed capital and has investment professionals and advisors in Mauritius, Singapore and Mumbai.