Power Gummies

Decoding Shorts - 1

We all would have heard of those "not-so-tasty" pills for hair fall and skin problems. Also, the "unpleasant" taste of the kadhas and the green teas for immunity and weight loss. Well, not anymore! Imagine something as small as chewy gum as a potential solution for all these problems. You read that right! Our start-up for today, Power Gummies and its founder Divij Bajaj has taken up the responsibility of fulfilling our body’s nutritional needs in a rather tasty manner.

Power Gummies are a vegan chewable gummies (health supplement) packed with various vitamins and minerals. And the best part? – it tastes delicious! Presently, the Company has three variants of gummies catering to 3 different needs – Hairs & nails, Weight management & Good health of menstruating women. Garnering the customer’s trust successfully, Power Gummies built a massive community of brand loyalists, and it resulted in the Company selling over 30L gummies only in three years of its inception.

India remains a multi-billion-dollar industry for dietary supplements. It was valued at $3.9B in FY20, and it is expected to grow at a CAGR of 17% until FY26. On the other hand, the global dietary supplement market is expected to expand at a CAGR of 8.6% from FY21 to FY28. Sensing the vast market opportunity, the company is now trying to increase its brand penetration across the semi-urban populous, launching multiple SKUs to cater to multiple needs, and planning to launch its products globally by the year-end.

Lastly, coming to the main question - how do the numbers add up with all the hype around the units sold? From an ARR of ~INR 8Cr in Jan 2020, PG was clocking an ARR of ~INR 36Cr by Jun 2021. A product like PG targeting the mass-market and common daily problems with 91% positive results typically sees recurring customer purchases (35% customer retention), resulting in a high customer LTV.

Hence, even if we assume the CAC to be higher initially, a higher LTV combined with strong margins should help PG make money (cash flows) in the long run. In the next few years, PG aims to reach INR 200Cr of revenue (FY23), expand its manufacturing facilities, launch an exhaustive app, and establish an offline presence in over 1,000 stores in the next few years.

Do you think PG can continue its exponential growth and become a Unicorn? We would love to hear your views and comments! Author - Yogakshem Dangi