Livpure Raises ₹233 Crore to Double Its Subscription Network Across India

Livpure has raised ₹233 crore to grow its subscription-based water purifier service. The funding comes from M&G, which contributed ₹208 crore, and Ncubate, which provided the rest. This money will help Livpure expand its service from 26 cities to 50, and eventually to 100 cities over the next three years.

According to Rakesh Kaul, Livpure’s managing director, the funds will mainly be used to build up the subscription network across the country. They also plan to improve their technology, including adding WhatsApp features to make it easier for customers to use their services.

Livpure’s business is mostly focused on big cities, but they are seeing more customers in smaller cities as well. Kaul noted that while the number of customers in these smaller cities is still small, more people are starting to use Livpure’s subscription service. This service allows customers to rent water purifiers on a monthly basis, removing the need for upfront costs and maintenance fees.

Livpure has raised a total of $64.7 million in funding from various investors, including Multiples Alternate Asset Management, Lakshya Holding, and NK Investment Group.

Building a Subscription-Based Brand

Launched in 2018, Livpure Smart, the company’s subscription service, has grown rapidly, expanding by 82% in FY23 and continuing to grow by 50% this year. The company plans to stay focused on water purifiers but is also considering expanding its subscription model to other products.

Kaul emphasized that Livpure’s main goal has always been to make clean water more affordable. As their customer base grows, they will explore offering subscriptions for other products.

Founded in 2012 by Rakesh Malhotra and Navneet Kapoor, Livpure offers a variety of products, including water purifiers, air coolers, kitchen appliances, and sleep accessories. They have built a strong service network with 2,000 field representatives covering 650 of India’s 743 districts.

Kaul mentioned that the key to any subscription service is providing high-quality service. Livpure is committed to creating a brand that is known for its excellent customer service.

Innovation and Future Plans

For now, Livpure is focused on strengthening its water purifier services, which make up 75-80% of their revenue. They are also investing in research and development to innovate across all product categories. Recently, they introduced new water purifiers that offer alkaline, copper-infused, and ambient water.

As Livpure grows, they expect the revenue mix to shift, with water contributing 65-70% and other categories making up the remaining 30%. However, Kaul said that water will remain the core focus of the company.

From Offline to Online

While many brands have moved into physical stores, Livpure, which started as an offline brand, shifted its focus online after the pandemic. This move has paid off, with 45-50% of their revenue now coming from online sales. Livpure focused on making their products more affordable through e-commerce, and this strategy has been successful.