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ChrysCapital, Motilal Oswal lead $153 million secondary funding in Healthkart at $500 million valuation

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ETtechLast Updated: Nov 18, 2024, 08:15:00 PM IST

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Health supplements startup Healthkart's existing investor, A91 Partners, and Neo Group also participated in the round. ET first reported on the impending deal at Healthkart with ChrysCapital in April. Peak XV Partners held around 27% stake in Healthkart, which was spun off in 2015 from 1mg, which is now owned by Tata Digital.

1669714689027 (1) — Sameer Maheshwari, founder and CEO at Healthkart

ChrysCapital and Motilal Oswal Alternates led a $153 million funding round in Healthkart—a health supplement startup that saw early investor Peak XV Partners make a complete exit.

The fundraise included a Rs 55 crore worth of employee stock option plans (Esops) – the first-ever such exercise by Healthkart, the Gurugram-based company said in a statement.

Neo Group and Healthkart’s existing investor, A91 Partners, also participated in the round, it said.

Separately, two people aware of the deal said Peak XV Partners, which had invested about $15 million (adjusted for currency rate) in Healthkart over multiple rounds, generated $120 million in total returns or more than $100 million windfall.

ET first reported in April on Healthkart's impending deal with ChrysCapital. Peak XV Partners held about a 27% stake in Healthkart, which was spun off in 2015 from 1mg, which is now owned by Tata Digital.

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The latest round valued Healthkart at $500 million, up from $370 million in December 2022 when it raised $135 million from Singapore’s sovereign wealth fund /Temasek/.

The company was founded in 2011 by Prashant Tandon and Sameer Maheshwari. Tandon currently runs 1mg.

“We welcome ChrysCapital and Motilal Oswal to Healthkart and hope to leverage their expertise during the next phase of growth,” said 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.”

“We welcome ChrysCapital and Motilal Oswal to Healthkart and hope to leverage their expertise during the next phase of growth,” said 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.”

Healthkart’s latest fundraise adds to a series of major secondary deals in fast-growing startups with a path to profitability including Lenskart, Purplle, OfBusiness and others.

Healthkart owns multiple digital-first nutrition brands including MuscleBlaze, HKVitals and Gritzo. In FY24, the company crossed the Rs 1,000 crore revenue milestone and also achieved full-year Ebitda profitability.

HealthKart continues to strengthen its power brands, along with an expanding presence in international markets, the company said in a statement. It has over 200 stores in 90 cities across India.

The company has yet to file its audited FY24 financials with the Registrar of Companies (RoC).

In FY23, it reported a 69.5% year-on-year rise in operating revenue to Rs 832.48 crore while net loss nearly halved to Rs 164.71 crore.

“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,” said Arpit Vinayak, VP, ChrysCapital.