Tea and wellness brand Vahdam India as part of its expansion strategy, plans to open 8-10 experience stores within India and one in an international market over the next two years.

The initiative aims to strengthen the brand’s presence in the domestic market, which currently contributes approximately five per cent of its total revenue, Bala Sarda, Founder and CEO, told businessline. The company closed the last fiscal year with revenue exceeding ₹200 crore.

With its first experience store owned and run by the company, which is located in Delhi, the brand is concentrating on developing a successful playbook and providing an exceptional customer experience, Sarda said.

Despite facing challenges such as a stressed bottom line due to the global recession and high input costs in the previous year, it remains optimistic about its growth prospects.

“We were in the negative last year, but I think we are recovering this year. By next year, we should get back to net profitability for the long term,” said the CEO. Additionally, it intends to achieve a year-on-year growth rate of 30-40 per cent for the coming years.

The primary focus of this growth will be on the key international markets, which include the United States, Canada, the United Kingdom, and Germany. Currently, the international markets make up over 95 per cent of its revenues. It is present in 6000 retail locations in the US, more than 250 in Canada, and more than 500 in the UK.

Further, it intends to deepen its presence in existing markets and distribution channels, with a particular emphasis on the spice category.

Vahdam recently ventured into the spice category, targeting the international market. “This strategic move aligns with the brand’s expertise in crafting blends that often consist mainly of pure spices with minimal tea content, such as chamomile tea.”

The expansion into spices was also driven by customer demand, resulting in the introduction of 25 single-origin spices tailored specifically for the US market,” he added.

Regarding fundraising, Vahdam currently has no immediate plans to raise additional capital. To date, it has already raised over ₹290 crore in funding from investors including venture capital firms such as IIFL AMC, Fireside Ventures, Sixth Sense Ventures, Mumbai Angels, and family offices - Mankind Pharma. However, the tea brand may consider raising more capital if the need arises in the future, noted Sarda.

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