Fitness supplement brand HealthKart announced a $153 million secondary funding round led by investors ChrysCapital and Motilal Oswal Alternates, as well as a buyback of employee stock options worth ₹55 crore.
Financial services platform Neo Group and HealthKart’s existing investors A91 Partners also participated in the round, the company said. In a secondary funding round, investors acquire stake in a company from other investors and no fresh capital is raised.
HealthKart has been valued at about $500 million for this funding round, according to a person familiar with the deal terms. The company was valued at $370 million when it previously raised capital in 2022.
“The Indian sports nutrition market, currently underpenetrated, is expected to expand due to a rise in fitness awareness and the increasing importance of nutrition and protein,” Arpit Vinayak, vice president, ChrysCapital, said in a statement.
Founded in 2011 by Sameer Maheshwari, HealthKart is a nutrition platform operating digital-first brands including MuscleBlaze, HK Vitals and Gritzo and across segments such as proteins, dietary supplements and kids nutrition.
The company also has over 200 offline stores in more than 90 cities.
In FY24, HealthKart crossed ₹1,000 crore in revenue and achieved full year Ebitda profitability, the company said in the statement. HealthKart has not yet reported its financials for the fiscal year with the ministry of corporate affairs.
For FY23, HealthKart had reported a 69.5% year-on-year rise in operating revenue to ₹832.48 crore, while its net loss nearly halved from the previous year to ₹164.71 crore.
ESOP buyback
HealthKart’s ₹55 crore ESOP buyback is its first liquidity event—which allows a company’s founders, investors and other shareholders to cash out.
“Very excited about our first ESOP buyback program, which will create meaningful value for people who have played a critical role in building HealthKart,” Maheshwari said in the statement.
The buyback will benefit both current as well as former employees of HealthKart.
“The company has demonstrated a strong track record of creating market-leading consumer health brands through its differentiated products and multi-channel distribution presence,” Rohit Mantri, co-head and managing director, private equity, at Motilal Oswal Alternates, said in the statement.
Avendus Capital acted as the exclusive financial adviser on the transaction.
