HealthKart, the Indian health supplement platform, has now secured a total of $153 million (nearly ₹1,270 crore) in a secondary funding round.
This round was led by ChrysCapital and Motilal Oswal Alternates, making up one of the largest secondary transactions for a consumer startup this year. To recap, in secondary transactions, existing shareholders, including early investors and employees alike sell their stakes to new investors, and do not involve the issuance of new equity or fresh capital into the company in question. Instead, they provide liquidity to existing stakeholders, as well as enabling new investors to enter the fold.
The latest round also included the participation from Neo Group and existing investor A91 Partners, elevating HealthKart’s valuation to approximately $500 million. This marks a notable increase from its previous valuation – during its previous funding round in 2022, the firm was valued at $370 million. Going forward, the startup has ambitious plans for the future, including expanding its international footprint and strengthening its existing product portfolio. This bodes well for the domestic health and wellness market, which will be able to clock a healthy growth as well.
In addition to this, HealthKart announced an employee stock ownership plan (ESOP) buyback worth ₹55 crore ($6.5 million). “We welcome ChrysCapital and Motilal Oswal to Healthkart and hope to leverage their expertise during the next phase of growth,” said Sameer Maheshwari, founder and CEO of Healthkart. “Very excited about our first Esop buyback programme, which will create meaningful value for people who have played a critical role in building Healthkart.”
Speaking of HealthKart, the startup first emerged as a spin-off of HealthkartPlus, which later became the popular health platform 1MG, 13 years ago. Since then, the startup has made a name for itself, carving out a space in the domestic market through its hybrid omnichannel approach. It currently has over 200 physical stores spanning more than 90 cities, and offers consumers convenient access to a wide range of health and wellness products via its e-commerce platform.
The company’s financials have been impressive as well, surpassing ₹1,000 crore in revenue during FY24 while achieving full-year EBITDA profitability. Its portfolio includes a variety of well-known brands, including MuscleBlaze, HKVitals, and Gritzo, as HealthKart caters to the various segments of the health supplement market. “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, VP at ChrysCapital, said in a statement.
“HealthKart’s commitment to high-quality and affordable dietary supplements perfectly aligns with our mission of promoting healthier lifestyles,” said Rohit Mantri, co-head of private equity at Motilal Oswal Alternates.
