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Jupiter Capital forays into FMCG segment; to launch luxury wellness marketplace

Jupiter Capital forays into FMCG segment; to launch luxury wellness marketplace

The company wants to create a digital footprint for its wellness business with an online marketplace that will curate India-inspired luxury wellness and leisure lifestyle products and services.

David Abikzir, chief investment office and executive director, Jupiter Capital David Abikzir, chief investment office and executive director, Jupiter Capital

Jupiter Capital, the family office of Rajeev Chandrasekhar, is venturing into the fast-moving consumer goods (FMCG) space with a slew of wellness and leisure lifestyle products, beginning with beauty, wine, and coffee.

The house of brands will be launched under a newly incorporated company Niraamaya Life. The company wants to create a digital footprint for its wellness business with an online marketplace that will curate India-inspired luxury wellness and leisure lifestyle products and services.

Jupiter Capital, a private equity and debt investment firm launched by entrepreneur and union minister Chandrasekhar, entered the hospitality sector in 2009 with the acquisition of boutique property Surya Samudra in Kovalam, Kerala. Jupiter rebranded the property to Niraamaya in 2012 and invested about Rs 400 crore into it. Niraamaya Retreats operates eight boutique properties across five states -- Kerala, Karnataka, Goa, Himachal Pradesh, and Nagaland.

"Pandemic has taken a toll on hospitality demand. Before Covid-19, 70 per cent of our guests were foreigners. We were thinking of ways to overcome the pandemic effects, we need to find new ways to grow and create volume. Today, we are pivoting Niraamaya not as a retreat but as a brand in the wellness industry, which will enable us to have a bigger consumer base and multiple client segmentation, and create brands not just on retreat but across several verticals that talk about wellness, well-being, and care," David Abikzir, chief investment office and executive director, Jupiter Capital, told Business Today.

The digital platforms (mobile app and website) will curate Indian-inspired luxury wellness properties where users can discover and book services. The platforms will provide live online yoga, walking meditation and other wellness practices from India, Indian music and meditation content, and organic and wellness products (starting with beauty, coffee, and wine). The company also plans to take a community-based approach to allow users live stream events from festivals and travel destinations from across the world.

The planned product line includes a slew of cosmetic beauty brands; a single-serving organic, biodynamic wine; and a 100% dissolvable coffee capsule. The products will be available on premium hotels and wellness, leisure retail outlets. Wine will be marketed online and sold through select retail outlets.

Abikzir said Jupiter will invest Rs 100 crore to develop the online marketplace and the brands. The first version of the app will go live in next four-five months and these services will be added in a phased manner.

"Our first target is to make each of these products Rs 100 crore brands. The timelines we are looking to achieve this is three-four years for beauty and five years for wine, coffee may take a bit longer," Abikzir said.

Jupiter's entry into the wellness space comes at a time when travel and tourism are showing signs of recovery after Covid-19 brought the sector to its knees in 2020.

According to a study by the Global Wellness Institute, wellness tourism market size globally is poised to grow at a compound annual growth rate (CAGR) of 7.7 per cent from 2021 to 2030 to surpass $1,672.6 billion by 2030 from at $793.2 billion in 2020.

The Bengaluru-based investment firm, which began with an initial investment of $100 million in 2005, operates in nine countries and backs brands and companies across a range of sectors, including technology, media and entertainment, wellness and hospitality, infrastructure and real estate, and corporate aviation.

Jupiter recently announced a $150 million fund to back software as a service (SaaS) and consumer internet startups. While the family office will be an anchor investor, the fund will raise a majority of the capital from domestic and global institutional investors. The launch of a specialised fund, the company hopes, will help it to emerge from the shadows of its entrepreneur-turned politician founder, and transition to an investment institution from being a family office.

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