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How three entrepreneurs started a sports nutrition startup to combat counterfeit products
- New Delhi-based start-up Nutrabay was founded in 2016 to address challenges, such as product authenticity and a lack of quality supplements, within India's nutrition and wellness supplement market, which is seeing rapid growth. Today, its website operates as a marketplace and sells third-party nutrition products along with its private labels, which make up around 150 SKUs. Nutrabay has served a total customer base of 1.5 million since inception, and the brand is experiencing steady growth, with 15-20K new customers being added each month.
- The prevalence of counterfeit products poses a serious challenge industry wide, appealing to consumer trust and potentially endangering health. Nutrabay's strategic pricing model means its private label products are positioned to be 10-20% cheaper than many Indian brands on average. This pricing strategy is supported by a lean supply chain model that minimises intermediary costs while ensuring high product quality.
- According to the founders, Nutrabay's products are affordable due to its strategic pricing model, accessible within the sport nutrition market with an Average Order Value (AOV) of Rs 2,000. The company implements strict quality control measures, ensuring multiple checks and balances with brands to guarantee the authenticity and quality of all products offered.
- Nutrabay aims to fill the gap in the market by creating a reliable B2C multi-brand store, addressing consumer concerns about product authenticity. Overall customer satisfaction leads to Nutrabay's strong demand for its scientifically-backed nutritional supplements across sports nutrition; vitamins, minerals, and supplements; and health food and drinks.
- Nutrabay's custom tech platform supports scalability and improves operations, giving them an edge in managing extensive product range and growing customer base. This D2C (Direct-to-Consumer) company focuses on quality and aims to provide high-quality sports nutrition at accessible price points, effectively addressing a gap in the market for affordable yet premium products.
- In September, Nutrabay raised $5m in a pre-Series A funding round led by RPSG Capital Ventures, along with participation from existing investors such as Kotak Alternate Asset Managers Limited, and others.The company, supported by a team of 150 members, generated an annual recurring revenue (ARR) of Rs 100 crore ($13.5m) in FY24.
- The dietary supplements market in India is projected to reach $10.2 billion by 2026, reflecting an impressive 22% year-over-year growth rate since 2020, when it was valued at $3.9 billion. Nutrabay considers brands like Healthkart, Optimum Nutrition, My Protein, and MuscleBlaze as its competitors, with its sights set on expanding its offerings and capturing a larger market share. With a tech-driven supply chain model and a revenue stream from diverse online and offline platforms, Nutrabay is well-positioned for success in India’s rapidly-growing nutritional supplements market.
- Nutrabay has served a total customer base of 1.5 million and is adding an average of 15-20K new customers each month
- Nutrabay’s products are affordable due to its strategic pricing model
- The company aims to enhance its offline presence by joining hands with modern trade and super specialty stores while also targeting general trade outlets.
- Nutrabay plans to establish its own offline retail stores by the end of the current financial year.
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