New Delhi, Sept 15: Livpure is betting big on its water-as-a-service model, targeting over 10 lakh subscriptions in the next four years as it intensifies efforts to scale up affordable access to clean and purified water across India, according to company Managing Director Rakesh Kaul.
The company, also present in categories such as appliances, mattresses and sleep accessories, is targeting a turnover of Rs 900 crore this fiscal year, a growth of up to 60 per cent from the previous 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,” Kaul told PTI.
With a view to reducing the cost of access to clean drinking water to consumers, he said,”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.”
All that a consumer has to pay is for the subscription of the service which can be for a single month scheme, a three-month plan, a six-month plan or a 12-month plan, 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 said.
He further said,”The whole idea is how do we ensure access to clean and purified water, and the cost is reduced to the billion Indians.”
Asked about the timeline for achieving the target, he said,”Four years down the line, we’re looking at 1 million subscribers in this business, which will be great, actually.”
In order to meet this aim, he said Livpure is expanding its network.
“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.
On the growth outlook, he said the company’s turnover grew 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.
Livpure, which had last month raised Rs 233 crore from M&G Investments and Ncubate Capital, will 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.
Asked 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.” (PTI)
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