WaterScience Raises Funding From Velocity
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Direct-to-consumer (D2C) startup WaterScience on Wednesday announced to have raised an undisclosed amount from Bengaluru-based revenue-based financier Velocity.in. This is the second round of financing they have raised via Velocity.in, having previously raised Seed funding from veteran PE professional and angel investor Aditya Somani.
"Non-drinking water accounts for more than 95 per cent of our daily water usage. I was surprised to find no solutions in the market to enhance its quality. At WaterScience, we are bridging this gap by building high-quality purification systems. Our products tackle hard water and chlorine which is a big problem in cities. They also help improve the efficiency of drinking water filters,” said Sudeep Nadukkandy, co-founder, WaterScience. Our shower and tap filters are seeing growing demand in metros and tier-I cities with declining water quality. We plan to use the funds from Velocity.in to acquire customers and build inventory. The first funding round helped us increase our revenues significantly despite the pandemic. We hope to take this number even higher and are targeting 35 crores this year with this round of financing. Equity and debt financing were not ideal for us, sacrificing equity or providing collateral in exchange for capital would have been an expensive trade-off. At the same time, we constantly need working capital to scale our business, thanks to Velocity.in we always have ready access to funding that can be raised without diluting equity or pledging our assets. We use these funds for new product development and to boost digital marketing spends, additionally we have the benefit of paying back the financing flexibly based on our revenues,” Nadukkandy added.
WaterScience manufactures filters that purify water for non-drinking use cases for the masses. As per a Niti Ayog study, India is placed at 120th amongst 122 countries in the water quality Index, with nearly 70 per cent of water being contaminated. The poor water quality coupled with the unavailability of solutions for non-drinking water in India led Mohammed Iqbal, Sudeep Nadukkandy, and Pavithra Rao to start WaterScience.
As per Avendus Capital, the D2C segment in India is expected to register a growth of 35 per cent year on year to reach $100 billion in size by 2025. WaterScience is one of such fast-growing D2C businesses that has upended traditional sales channels by selling directly to customers.
“Prior to the pandemic, we used to generate around 5 per cent of revenues via our own website while the remaining was via marketplaces like Amazon. Our focus was always to increase the website’s share of revenues, with the right digital marketing spends we have now successfully increased our website sales to 30 per cent of online revenues,” remarked Nadukkandy.
"WaterScience is an internet-first brand with impressive returns on digital marketing and strong unit economics. An online model coupled with a loyal customer base worked in their favor during the pandemic. Since we had a historical relationship with them, we were able to approve this round of financing within just 3 days. WaterScience has carved a niche and solves a problem that plagues our country. We are happy to fund their growth and build on our long-standing relationship with them," shared Abhiroop Medhekar, co-founder and chief executive officer, Velocity.in.