Vahdam is an internet-first brand for tea powders that announced a 10.6 percent increase in operational revenue to Rs 225.2 crore in FY24. The startup provides various tea flavors such as herbal, lemon, and ginger tea. The company also offers drinkware, spices, and other products. These product sales account for 99 percent of the total income and are the company’s primary source of revenue.
The firm also earns its income through non-operating services which stood at Rs 10 crore in FY24. The USA market accounted for 68.5 percent of total operating revenue and increased by 12 percent to Rs 154.2 crore for this financial year. These services brought the overall revenue to Rs 235 crore in FY24. This D2C tea brand has secured over 40 million USD across multiple funding rounds since its inception, including $24 million raised during its series D funding round led by 360 One, Sixth Sense Ventures, and others.
Vahdam Teas provides premium tea and spices directly from farms to its customers. The company offers its products across the US, Europe, and Canada markets through its own websites and online marketplaces. The USA remained the largest contributor to the firm’s operating revenue followed by India, which grew by 18 percent to Rs 14.84 crore. Europe contributed Rs 37.4 crore and the remaining Rs 19.8 crore came from other countries.
The Delhi-based company claims to use caffeine-free and natural ingredients in its products, positioning it well in the global market. The startup managed to control its losses by reducing employee benefits and other expenses. The firm posted an 18.4 percent increase in its employee benefits which stood at Rs 29 crore in FY24. The cost of materials was around Rs 47 crore, while the advertising cost decreased by 18.9 percent to Rs 50 crore in the same duration. The company’s loss saw a 67.9 percent decrease and stood at Rs 17.7 crore in this financial year.
The freight and forwarding expenses declined by 7 percent and crossed Rs 68 crore while other expenses stood at Rs 58.9 crore in FY24. The startup reported current assets of Rs 142 crore in this financial year. The total expenditure decreased by 4.7 percent and crossed Rs 253 crore in FY24. The EBITDA margin stood at -4.26 percent while the ROCE was around -13.20 percent in this fiscal year. The company faces competition from tea brands such as Teabox, Jade Forest, and Brewhouse Tea.
Conclusion:
Vahdam Teas announced a 10.6 percent increase in its revenue from operations to Rs 225.2 crore in this fiscal year. The D2C startup offers premium-quality tea and spices through its online platforms. Product sales are the company’s major source of revenue. The startup posted a 68 percent decrease in its losses and crossed Rs 17.7 crore in FY24. Employee benefits stood at Rs 29 crore in the same duration. The non-operating services pushed the total revenue to Rs 235 crore in the same duration.
Niraj Kumar is the Founder and CEO of Scoopearth, bringing over 13 years of experience across diverse domains, including journalism, content marketing, digital marketing, startup mentoring, and business coaching. His extensive background and leadership have made a significant impact in these areas, helping startups grow and succeed in a competitive landscape.
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