Start-ups pitch niche female wellness products via social media channel

When Jigyasa Shah shifted to a locality on the outskirts of Vadodara from Delhi after her marriage, she was in for a shock – nearby stores did not stock good quality menstrual products and kept only low-value sanitary pads. She often had to plan, and purchase good quality pads from bigger stores in the city until a neighbour introduced her to Nuawoman.

Not only did Nuawoman home deliver menstrual products in discreet packaging, but it also allowed Shah to customise the mix of sanitary pads as per her monthly needs.

But Nuawoman isn’t the only brand to help women leverage the comfort of social media-based marketing for the most intimate of their needs as evident by the rising popularity of brand like Carmesi, Floh and Heyday. The feminist discourse across the online community has created a space for products like these which are advertised for their comparatively higher health and safety benefits but also better customisation to their needs. While the demand largely comes from metro cities, tier I and II cities are not far behind. The product ecosystem popularly known as femtech is slowly gaining ground with investors warming up to them.

Swathi Kulkarni, Co-founder Nuawoman

Opportunity

According to a report by market research firm IMARC Group, the Indian sanitary napkin market is expected to worth $631 million by 2023 — growing at a CAGR (compound annual growth rate) of more than 6 per cent in 2018-2023 — compared to $441 million in 2017.

Currently, brands like Whisper (P&G) Johnson & Johnson (Stayfree, Carefree), Kimberly Clark (Kotex) and Unicharm (Sofy) are the market leaders in this space, with Whisper taking the lion’s share. Yet, investors are clearly seeing value as a slow but steady interest rises in start-ups in this space.

Recently Lightbox ventures invested $4 million in Nuawoman in Series A funding round, apart from Kae Capital, which invested for the second time. Carmesi, a premium, biodegradable sanitary pad brand raised a Pre-Series A funding of $500,000 (Rs 3.44 crore) from Samrath Bedi, managing director, Forest Essentials, a luxury Ayurvedic beauty brand last year.

Nuawoman launched its services in January 2018 and currently has an online community of over a 100,000, well over 50 per cent of which are regular transacting customers. “There are few women-focused wellness brands that provide solutions to, say, women having the polycystic ovarian disorder or those who suffer from heavy pre-menstrual syndrome… We are trying to close that gap,” said Swathi Kulkarni, co-founder Nuawoman.

Similarly, the founder of FLOH Tampons, Gauri Singhal, was inspired to enter this space after chance research on the dismal adoption levels of menstrual products across the country. “As existing brands have been ‘whispering’ about periods and convenient feminine hygiene solutions, we can create a good buzz around the topic by using a language that works well with millennials, who are now a major part of our target customers,” said the Lady Shri Ram College and London Business School alumnus.

Challenges

These founders have all gone for an online first approach as that allows women to discuss their problems freely within the communities and give better feedback. But a common issue that the female leadership of these companies have faced and would like to address is on the investor end. “Every time we present our business case to a group of investors, there’s a lot of basic biology that we need to explain to the all-male panel of investors, and hopefully that will change soon,” said one of the founders.

While these start-ups have taken the online route, there are many others like Mumbai-based Aakar, Ahmedabad-based Saathi and Gorakhpur-based Niine which are taking a grassroots approach by targeting the rural population with low-cost products and employment opportunities in the manufacturing units.  

The VC community itself is new to this product space with the likes of Lightbox, Venture Catalysts and Kae Capital leading the pack with flagship investments in these FMCG veteran-run companies. Dr Apoorv Ranjan Sharma, founder, Venture Catalysts (investor in Pee Buddy and India's first health tech accelerator) does, however, offer a quick checklist for the companies in the space. “Products should go through rigorous scientific trials before being launched in the market as it can directly impact the health of the consumer. Market research is extremely important as the end-consumer will be able to give the most important feedback, which will eventually determine the success of a product. Finally, entrepreneurs should give the topmost priority to the social problem-solving aspect of the business,” he said.

Femtech on the rise

• Menstrual hygiene and female wellness products have found a new market through social media channels.
• The privacy of digital communication allows women to discuss niche demands effectively
• These brands are channeling feminist discourse to find their user base
• Subscription models, biodegradable materials and social causes are driving investments