How three entrepreneurs started a sports nutrition startup to combat counterfeit products

The nutrition and wellness supplement market in India has seen significant growth in the recent years, driven by heightened health awareness, a growing middle class, and increased acceptance of nutraceuticals. However, the prevalence of counterfeit products pose a serious challenge, undermining consumer trust and potentially endangering health.

Shreyans Jain, Divay Jain, and Sharad Jain identified these challenges within the sector, particularly the prevalence of counterfeit products and the lack of quality supplements. They also realised that existing distribution methods were insufficient to ensure product authenticity and quality. This led to the founding of Nutrabay in 2016.

The New-Delhi-based startup currently offers curated, scientifically-backed nutritional supplements across sports nutrition; vitamins, minerals, and supplements (VMS); and health food and drinks. Nutrabay also aims to fill the gap in the market by creating a reliable B2C multi-brand store, addressing consumer concerns about product authenticity.

“When Nutrabay launched in 2016, the sports nutrition and wellness sector lacked a 100% business-to-consumer (B2C) multi-brand store. Consumers had to rely on marketplaces that featured third-party sellers, raising concerns about product authenticity,” says Shreyans Jain.

Today, the company’s website operates as a marketplace and sells third-party nutrition products along with its private labels. The platform has over 4,000 SKUs, featuring over 150 brands along with its private label. 

“Under the private label, we offer 150 SKUs, and overall, we have 4,000 SKUs listed. We plan to add 50 more SKUs under the private label this fiscal year,” he adds.

Standing apart

According to the founders, Nutrabay’s products are considered affordable due to its strategic pricing model. With an Average Order Value (AOV) of Rs 2,000, it is accessible within the sports nutrition market. 

Nutrabay's private label products are positioned to be 10-20% cheaper than the average price of many Indian brands, according to Shreyans Jain. This pricing strategy is supported by a lean supply chain model that minimises intermediary costs while ensuring high product quality.

Speaking about USP, he says, “The company implements strict quality control measures, ensuring multiple checks and balances with brands to guarantee the authenticity and quality of all products offered. This focus on quality extends to Nutrabay's private label, which aims to provide high-quality sports nutrition at accessible price points, effectively addressing a gap in the market for affordable yet premium products.”

The brand is also experiencing steady growth, with 15-20K new customers being added each month, indicating a strong demand for its products.

Overall, Nutrabay has served a total customer base of 1.5 million since inception, indicating a substantial market reach.

The brand. operating online as a D2C (Direct-to-Consumer) platform, has also developed a custom tech platform to support scalability and improve operations, giving it an edge in managing extensive product range and growing customer base. 

Recently, Nutrabay made its foray into the Ayurvedic supplements market by launching Shilajit, driven by the industry’s booming growth potential. This launch aligns with the brand’s broader strategy to diversify its private-label product portfolio and meet the increasing consumer demand for natural and holistic wellness solutions in India’s rapidly-growing nutritional supplements market. 

“Known for enhancing strength, stamina, and vitality, Shilajit was selected as the flagship product due to its synergy with Nutrabay’s focus on sports nutrition and wellness. With an annual growth rate of 15-20%, Shilajit positions Nutrabay to attract Ayurveda enthusiasts and fitness-conscious consumers,” adds Shreyans Jain, who gained experience as an Enterprise Account Executive at Renaissance (formerly FrogIdeas), before starting Nutrabay. 

Sharad Jain has previously worked in various sectors in the finance and pharmaceutical industries, while Divay Jain has spent over a decade at Radicura Pharmaceuticals.  

Market opportunities and business

The dietary supplements market in India is projected to reach $10.2 billion by 2026, reflecting an impressive 22% year-over-year growth rate since 2020, when it was valued at $3.9 billion, according to the Ministry of Food Processing Industries. This rapid growth underscores the increasing consumer interest in health and wellness products, creating significant opportunities for brands like Nutrabay to expand their offerings and capture a larger market share.

The health and wellness sector in India, which was once dominated by brands such as Amway, Cipla, Herbalife, and Himalaya Wellness, has seen many new entrants in the recent years. Brands such as OZiva, MuscleBlaze, and Wellbeing Nutrition are leveraging innovation and digital channels to attract health-conscious consumers.

Nutrabay considers brands like Healthkart, Optimum Nutrition, My Protein, and MuscleBlaze as its competitors. 

The company, supported by a team of 150 members, generated an annual recurring revenue (ARR) of Rs 100 crore in FY24. Currently, 60% of its revenue comes from its D2C website, while 35% comes from its marketplace, and the remaining 5% is derived from offline stores.

In September, the company raised $5 million in a pre-Series A funding round led by RPSG Capital Ventures, along with participation from existing investors such as Kotak Alternate Asset Managers Limited, and others.

Speaking about investing in the startup, Abhishek Goenka, Managing Partner at RPSG Capital Ventures, said, “We have strong conviction in nutrition, health, and wellness as a space. We have seen sports nutrition growing beyond metros and a high incoming demand from Tier 2 and beyond markets as well.” 

“Nutrabay has demonstrated impressive growth and a strong commitment towards product quality. We believe in their vision and are excited to partner with them as they continue to disrupt the sports nutrition market in India,” he added.

“We ensure product quality through brand authorisation certificates from partner brands and lab testing for their private-label products to ensure accuracy and safety,” claims Shreyans Jain.

Plans ahead

Speaking about future plans, Shreyans Jain says, “We started as a digital-first business, and even today, the majority of our sales come through online channels. However, the company is now embracing an omnichannel strategy as part of its expansion plan, aiming to reach more consumers offline.” 

Nutrabay, already present in over 80 super specialty stores, has ambitious plans for further expansion. The company aims to enhance its offline presence by joining hands with modern trade and super specialty stores while also targeting general trade outlets. Furthermore, Nutrabay plans to establish its own offline retail stores by the end of the current financial year.