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One of Australia's fastest-growing online vitamin brands Vitable has raised $7.5 million amidst rapid expansion with 100,000 customers utilising the personalised delivery service and a quarter of its sales now overseas.
The latest round takes the company's external investment to $15 million since Vitable was founded by Larah Loutati and Ilyas Anane in 2019, with backers including Global Founders Capital, Rocket Internet, Artesian, Commencer Capital and Brenteca.
With this momentum and against a backdrop of a $12 million annualised revenue run rate in June, in mid-August the startup is set to launch an expressions of interest (EOI) for a potential $3 million equity crowdfunding campaign on Equitise.
Sydney-based Vitable is more than just a direct-to-consumer e-commerce business. Anyone visiting its website will immediately be asked to take a quiz, and the responses are plugged into a proprietary algorithm powered by artificial intelligence to assess each customer's specific nutritional supplementation needs.
The company is able to gather a deep understanding of consumers through its subscription service and its data-centered approach, and is now looking to grow its product offering and footprint in new markets such as New Zealand and Southeast Asia, which combined now account for 25 per cent of sales.
Co-founder Larah Loutati was inspired to start the business as a result of her own personal experiences and struggles with confusion in the vitamin industry, with a desire to simplify consumer health and help individuals achieve their health goals with personalised solutions.
As a seasoned consultant and after several years working in finance, she moved to Australia to join HelloFresh Australia from an early stage venture through to its initial public offering (IPO) in 2017, working as head of customer experience.
But such a demanding corporate job took its toll on her health.
"As my energy levels plummeted and fatigue became my constant companion, I realised something needed to change," she says.
"But navigating the overwhelming sea of conflicting health information and countless products was a daunting task.
"I found myself spending hours in the vitamin aisle, unsure of what to buy. The experience left me feeling overwhelmed and convinced that there had to be a better way to cater to individual needs and help people achieve optimal health outcomes."
Loutati then teamed up to co-found Vitable with Anane, a former colleague from her days at Deloitte in Paris who had since worked as chief marketing officer for Rocket Internet-backed UShift in Singapore.
Now in its fourth year of business, Vitable plans to take market share of the global health and wellness industry.
"The global health and wellness market is booming, worth over $2 trillion and growing at 5-10 per cent annually. Yet, despite increasing efforts, health outcomes continue to worsen," she says.
"An alarming 74 per cent of worldwide deaths are caused by chronic illnesses linked to nutrition and lifestyle factors. This is compounded by the fact that the traditional consumer health journey is confusing, costly, and ineffective. We knew there was a better way.
"In just four years, Vitable has become the leader in the personalised vitamin pack category in Australia."
Vitable’s proprietary technology is tailored to produce an optimal product plan for each customer based on their unique needs, while continuously learning and improving conversion, basket size and retention.
This is coupled with millions of data points captured by Vitable regarding consumer behaviour helping Vitable address consumers’ unmet needs accurately. The company’s mobile App reports to have seen improved measurable health outcomes for clients, and increased considerably customer stickiness and retention for Vitable.
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