NEW DELHI: Livpure’s managing director Rakesh Kaul said that the company is aiming for over 1 million subscriptions in the next four years and is also focusing on expanding affordable access to clean and purified water across India. The company is aiming at a turnover of Rs 900 crore this fiscal year, up by 60 per cent from last year.
“India is a huge market, and everyone knows that purified water and access to purified water is a big challenge.Currently, in a country the size of ours, penetration of water purifiers is still at 7 to 8 per cent of the total household population of India. We launched an innovative business model called water-as-a-service four years back, whereby we decided that the installation (of electric water purifier) will happen absolutely free of cost,” Kaul told news agency PTI.
The consumer would have to pay only for the subscription of the service which would be available in a variety of plans: single month, three-months, six-months or a 12-month plans, thereby bringing the cost of acquisition.
“We have more than 2,50,000 consumers in a span of three-and-a-half years now. We command more than 65 per cent share of this subscription market. Going forward, we are looking at the water market, not from the lens of only water purifiers as a product, but water-as-a-service. We could look at 1 million subscriptions,” Kaul added.
“Currently, our operational cities are 26 but we get mainly business from bigger cities, and we intend to be in 50 to 75 cities in the next two to three years, and eventually cover hundreds,” Kaul said.
He said that the company’s turnover has grown by over 57 per cent last fiscal.
“Even in the first quarter of this year we grew by 45 per cent. We are planning a growth of 55-60 per cent this year as well…We are looking at a revenue of close to Rs 900 crore this year,” he added.
In the previous month Livpure raised Rs 233 crore from M&G Investments and Ncubate Capital and is planning to utilise a significant chunk to enhance its subscription base.
“We would continue to invest in the subscription business, where the capex would be deployed for installing the machine free of cost to the consumer’s place,” he said.
Talking about how the fresh funds would be deployed, Kaul said,”On a ballpark figure around 40-50 per cent on the subscription capex, and 20-odd per cent on the manufacturing capex, another 15 per cent on the innovation and tech build up, tech stack, and maybe another 15 per cent in building the exclusive business outlets, which we are opening.”