“The capex will primarily be required to build the subscription network across the country as we expand from 26 cities to 50, and eventually to 100 cities in the next three years,” said Rakesh Kaul, managing director, Livpure.
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Of the total funds, ₹208 crore comes from M&G, with Ncubate contributing the remaining amount. The fresh proceeds will also support the enhancement of Livpure’s technology stack, including integrating features like WhatsApp to streamline the user experience.
While Livpure’s business remains heavily concentrated in tier-one cities, Kaul noted a significant uptick in adoption rates in tier-two cities.
“We’re seeing growth in tier-two cities, and while the base is still small, consumers are increasingly adopting the subscription model,” Kaul explained. This shift underscores the growing acceptance of Livpure’s subscription model, which offers a monthly rental service for water purifiers, eliminating upfront costs and maintenance fees.
To date, Livpure has raised a total funding of $64.7 million from prominent backers like Multiples Alternate Asset Management, Lakshya Holding, and NK Investment Group, among others, according to Tracxn.
Building a subscription-driven brand
Launched in 2018, Livpure Smart—the company’s subscription-based water service—has seen remarkable growth, expanding by 82% in FY23 and continuing to grow by 50% this fiscal year. Livpure’s strategy is to maintain its focus on water purifiers while exploring opportunities to extend its subscription model to other product categories.
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“Our primary focus at Livpure has always been to reduce the cost of access to clean water,” Kaul emphasized. “We believe there’s significant potential to continue to build our subscription business in this category. That said, as our customer base grows, we’ll continue to listen to their needs and consider expanding our subscription services to other areas.”
Founded in 2012 by Rakesh Malhotra and Navneet Kapoor, Livpure offers a diverse portfolio, including water purifiers, air coolers, kitchen appliances, and sleep accessories.
The company has built a robust subscription infrastructure, with a service network spanning 2,000 field representatives covering 650 of India’s 743 districts.
“The core of any subscription service is its service quality…We have everything in place as a platform, and we are very keen on creating a highly service-intensive brand in this space,” said Kaul.
Innovation and R&D: The next frontier
For now the company remains focused on strengthening its water purifier services. “Water remains our largest revenue driver, with water subscriptions, products, and services currently accounting for about 75-80% of our revenues,” Kaul highlighted.
As Livpure scales its subscription network, it’s also investing heavily in research and development to innovate across all product categories. The company recently introduced water purifiers that dispense alkaline, copper-infused, and ambient water, highlighting its commitment to evolving its core offerings.
The company expects its revenue mix to shift, with water contributing 65-70% and other categories making up the remaining 30% as expansion and growth continue. “However, from a recognition, profitability, and scalability perspective, water will remain our core focus,” Kaul told Mint.
From offline to online
While many direct-to-consumer brands have expanded into offline channels, Livpure, traditionally an offline brand, made a strategic shift online post-pandemic.
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“We concentrated on making our water purification products more affordable through e-commerce. This focus on digital channels during and after the pandemic has paid off, with 45-50% of our revenue now coming from online sales,” said Kaul.