Vahdam, the digital-first wellness tea brand, is preparing for a formal launch in India at a time when its biggest market is reeling under the tariff shock unleashed by US President Donald Trump.
Over the next 4-6 weeks, the company, founded by Bala Sarda, will introduce a slew of products crafted for Indian tastes and wellness aspirations. Apart from teas and functional infusions, it will introduce herbs, botanicals and supplements, marking a pivot in strategy a decade after Vahdam started its journey.
The launch, even though planned for months, almost coincides with the imposition of a 50 per cent tariff by the US, hitting its shipments to North America hard. The US has been Vahdam’s number one market, accounting for 62 per cent of revenue in FY25, followed by Canada, the UK and Germany. India accounted for just about 5 per cent of the revenue for the brand.
“We are looking at a digital-first model to build a certain scale of revenue and create awareness of the brand in India before hitting the shelves for an omnichannel drive. This is the same playbook we used in other markets as well, especially the US,” Sarda said.
Vahdam, which is an anagram of the name of his father Madhav, managed to earn a revenue of ₹270 crore in FY25. Sarda said he is sticking to the target to reach ₹340 crore for FY26 as of now, hoping the tariff impasse to end soon.
“We’re on track to reach ₹100 crore in annual recurring revenue (ARR) in India within the next 12 months,” Sarda said.
The company, which has turned PAT positive in FY25, has so far raised ₹300 crore in venture funds, including ₹200 crore in primary issue and the rest through secondary transactions, which also provided exits for some early investors.
US market
Vahdam managed to send shipments to beat the August 27 deadline when the 50 per cent tariff came into force. Since then, it has been sending only shipments which are absolutely needed to replenish the stocks.
Sarda, whose father owns the prominent Darjeeling tea retail boutique Golden Tips, admitted the company is taking a hit on the profit and loss account for the time being. In other words, it is eating the tariff as Trump had told businesses to do when he imposed them, both sectoral and reciprocal.
“We’re in active conversations with our partners. Although it’s still early and nothing has been finalised as there are a lot of uncertainties,” Sarda, who was in the US recently, said.
After years of selling online with large offerings, Vahdam has now expanded its reach through multi-brand retailers such as Walmart and Costco. In India, the company plans to do the same, while hoping India and the US strike a trade deal soon to bring down the tariff heat.