Tasty Gummies Can Be Nutritious
The gummies space has seen new brands coming to the market. How have you responded to this?
With the increase in competition, we are working on being EBITDA-conscious. We launched new gummy variants and completely changed our digital marketing playbook as customer acquisition costs doubled. We faced many challenges, especially with Apple blocking data sharing with Facebook, which gave us a jolt. Yet, we excelled in building our in-house marketing tech team to pave the way for us. What has helped us is our product efficacy, word of mouth, and user-generated content.
What are your next fundraising plans?
We are preparing to raise our Series B funding round in June-July 2023. Our goal is to raise Rs 100 crore to actualise our growth initiatives. Our current funding status is strong, thanks to the success of our Series A round. However, we believe that now is the right time to raise additional capital.
We aim to introduce over 40 gummy variants in the coming years as well. Our Series B funding round will enable us to accelerate our growth plans.
Tell us more also about your plans for 2023 and the areas of investment in the year ahead.
The past year was great in terms of revenue targets -- we were able to overachieve by eight per cent. In 2023, we plan to launch kids’ gummies and new variants in generic wellness, expand our product line to reach a new audience and tap into a growing market segment. We have also invested in a new manufacturing plant that is going to be live very soon and will allow us to scale our production and streamline operations. It will ensure that everything going into Power Gummies will be made in India with a sustainable and eco-friendly brand ethos.
Gummies are seen as something strictly for children. How did you convince people about your product in the early stages?
One of the main challenges we faced when we started was convincing others that our idea was more than just a ‘kiddish’ or ‘toffee’ business. The other challenge was to make people believe that tasty gummies could also be nutritious. Managing customer expectations too was not easy.
We wanted to be honest with our customers and not make false promises about overnight results. We had to communicate that our products require regular intake over a period to
show proven results. Today, we continue to face challenges specific to the nutraceutical industry, including regulatory compliance and customer education.
