 "HealthKart raises $153 million from ChrysCapital, Motilal Oswal Alternates")
HealthKart, the parent company of nutrition and fitness brands MuscleBlaze and HKVitals, on Monday announced that it has raised $153 million in secondary funding, led by ChrysCapital and Motilal Oswal Alternates.
Neo Group and HealthKart’s existing investor A91 Partners also participated in the round, while Avendus Capital acted as the exclusive financial advisor for the transaction.
HealthKart also announced an employee ESOP buyback worth Rs 55 crore, the company’s first liquidity event.
The buyback will benefit both current as well as former employees who have been part of the company's growth journey, the company said.
“We welcome ChrysCapital and Motilal Oswal to HealthKart and hope to leverage their expertise during the next phase of growth. Very excited about our first ESOP buyback program which will create meaningful value for people who have played a critical role in building HealthKart,” said Sameer Maheshwari, Founder and CEO of HealthKart.
With the freshly-raised capital, the company plans to “strengthen its power brands” and expand its presence in international markets.
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According to Arpit Vinayak, vice-president, ChrysCapital, 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.
“MuscleBlaze stands out as a leading brand, supported by a robust mix of proprietary channels, while HK Vitals offers high quality nutraceuticals,” he said.
The funding round comes after the company’s impressive performance in financial year 2023-24 (FY24) where it achieved full year earnings before interest, taxes, depreciation and amortisation (EBITDA) profitability and crossed Rs 1,000 crore in revenue.
The company is yet to report its FY24 financials with the Ministry of Corporate Affairs.
“We are very excited to partner with HealthKart in its next phase of growth journey. The company has demonstrated a strong track-record of creating market leading consumer health brands through its differentiated products and multi-channel distribution presence,” said Rohit Mantri, Co-Head and Managing Director - Private Equity at Motilal Oswal Alternates.
HealthKart’s round comes at a time when funding among Indian startups has shown a resurgence, Business Standard had reported earlier.
Startup funding in 2024 has increased by 10 per cent year-on-year (YoY), reaching $9.78 billion, compared to $8.88 billion during the same period last year, according to market research firm Tracxn.