Why we invested in The Good Bug
India’s health and wellness landscape is undergoing a profound shift, with nutraceuticals emerging as a key driver. Positioned at the crossroads of pharmaceuticals and FMCG, these natural, benefit-driven products are quickly becoming an essential part of modern Indian lifestyles.
The sector is booming—valued at $8 billion in 2023, it’s set to grow at an impressive 11% CAGR through 2027, far outpacing global trends. This momentum reflects a broader move toward preventive healthcare, where consumers increasingly prioritize long-term well-being over reactive treatment.
Several powerful forces are fuelling this rise. Health consciousness is growing, shaped by the COVID-19 pandemic and access to information. Rising incomes are enabling consumers to spend more on wellness. Social media has made health trends aspirational and accessible, especially for younger audiences. At the same time, widespread micronutrient deficiencies and rising medical costs are reinforcing the need for proactive solutions.
Digital access via e-commerce and D2C models has made these products more convenient and personalized. Meanwhile, modern takes on Ayurveda and niche solutions targeting specific needs—like gut health, cognitive function, and women’s health—are resonating deeply with urban consumers.
In short, nutraceuticals are no longer niche—they’re becoming foundational. With strong macro tailwinds and evolving consumer behaviour, India’s wellness economy is primed for disruption and innovation. For brands, entrepreneurs, and investors, the opportunity to shape the future of health in India has never been greater.
Within India’s rapidly evolving wellness space, The Good Bug (TGB) has emerged as a standout player with a focused and differentiated approach. The brand is rooted in the belief that the gut is central to overall health—a philosophy long embraced by traditional Indian systems like Ayurveda. Rather than addressing symptoms in isolation, TGB aims to resolve the root causes of health concerns by improving gut function and supporting the microbiome.
The Good Bug (TGB) is redefining the wellness space with gut health solutions that go beyond typical OTC products and unproven natural remedies. Its user-friendly offerings—like oro-soluble probiotics, detox shots, and prebiotic fibres—stand out for their scientific rigor, even when not required, building strong consumer trust and loyalty. TGB’s innovative approach is clear in the success of Metabolic Lean, a product that gained traction through user feedback and led to commissioned clinical studies. Encouraging results have prompted patent efforts and further research, showing TGB’s agility and credibility in a market primed for disruption.
Leading the market demand for these higher-end nutraceutical supplements are India’s affluent, health-conscious consumers—individuals who have the time, interest, and disposable income to prioritize health and wellness. With a growing emphasis on prevention, gut health has emerged as a key pillar of long-term well-being, supporting immunity, metabolic balance, and overall vitality in a proactive, science-led manner.
Tapping into this shift, The Good Bug (TGB) is rewriting the rules of wellness with science-led, purpose-driven products that are winning over today’s health-conscious consumers. With hero SKUs consistently ranking as best-sellers across major e-commerce platforms and a loyal customer base, TGB has proven its ability to earn trust through efficacy, transparency, and innovation. High repeat purchase rates and strong retention signal a clear product-market fit and long-term consumer confidence.
Since launch, The Good Bug (TGB) has scaled rapidly in the direct-to-consumer space, driven by a capital-efficient, scalable model and a focus on operational excellence. As preventive health gains momentum, TGB is doubling down on Digestive Health and Weight Management while expanding into Gynaecological, Cognitive, and Immune Health. With innovative formats like probiotic + fiber blends and fermented functional beverages, and a strategic push into offline retail and global markets—including the Middle East and Europe—TGB is poised to lead the next wave of science-driven wellness, backed by rising health awareness and a growing Affluent India segment.
Our investment in The Good Bug was driven by the strength of its leadership. Co-founders Keshav Biyani and Prabhu Karthikeyan bring deep expertise in consumer strategy, brand building, and operational scaling. With experience from Future Group, Reckitt, and Dabur, they’ve built a high-calibre team across Nutrition, Medical Affairs, and Regulatory Compliance. Their track record of driving profitable, sustainable growth gives us full confidence in TGB’s potential to scale and lead in the wellness space.
We’re excited to partner with The Good Bug as they scale their leadership, enter new categories, and expand across channels. This is more than an investment—it’s a trusted partnership focused on scaling impactful innovation in the wellness space. With strong macro trends and a vital mission, TGB is empowering people to take charge of their gut health—and we’re proud to support their journey toward a healthier India.
Our investment in TGB aligns with our objective of backing emerging D2C brands that are revolutionizing traditional markets with innovative products. Beyond health & wellness, we see numerous other categories where new brands can address shifting consumer tastes and preferences. We seek entrepreneurs who are challenging established brands and demonstrating efficient capital utilization. This is reflected in factors such as high gross margins, strong Return on Ad Spend (RoAS) or Lifetime Value to Customer Acquisition Cost (LTV/CAC) ratios, and minimal working capital cycles.
The Good Bug (TGB) now joins our growing group of consumer brands in India, alongside Wakefit, and Nestasia. You can explore more of our India-based portfolio companies – Companies | Susquehanna Asia VC. If you’d like to share feedback on our thoughts above or if you’re building in the consumer internet space, please write to Abhilash Karri at abhilash.karri@sig.com – we’d love to share our learnings and help out along the journey.