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HealthKart raises $153 million in funding, valuation hits $500 million

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  • Funding Achievement: HealthKart, a fitness supplement brand, raised $153 million in a secondary funding round led by ChrysCapital and Motilal Oswal Alternates, with participation from Neo Group and existing investor A91 Partners.

  • Increased Valuation: The investment values HealthKart at approximately $500 million, a significant rise from its $370 million valuation during the 2022 funding round.

  • Established Brands: Founded in 2011, HealthKart is known for its digital brands such as MuscleBlaze, HK Vitals, and Gritzo, specializing in sports nutrition and dietary supplements, while also managing over 200 offline stores in more than 90 cities across India.

  • Employee ESOP Buyback: The company announced its first-ever employee stock option plan (ESOP) buyback worth Rs 55 crore ($6.5 million) to benefit current and former employees, indicating a commitment to rewarding those who contributed to its growth.

  • Market Potential: Investors highlight the untapped potential of the Indian sports nutrition market, driven by increasing fitness awareness and the importance of nutrition, which is expected to contribute to HealthKart’s growth and value creation in the future.

Homegrown fitness supplement brand HealthKart has raised $153 million in a secondary funding round led by private equity firm ChrysCapital and Motilal Oswal Alternates.

The round also saw participation from Neo Group and existing backer A91 Partners.

Valuations hits $500 million

According to media reports, the latest investment values HealthKart at approximately $500 million, a jump from its $370 million valuation during its 2022 funding round.

Founded in 2011 by Sameer Maheshwari, HealthKart operates popular digital-first brands such as MuscleBlaze, HK Vitals, and Gritzo, focusing on sports nutrition, dietary supplements, and kids’ nutrition.

The company also manages over 200 offline stores across more than 90 cities in India.

ESOP buyback

Apart from the funding, HealthKart also announced its first-ever employee ESOP buyback worth Rs 55 crore ($6.5 million), benefiting both current and former employees.

“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.

Investors comment

“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,” said Arpit Vinayak, VP of ChrysCapital.

“We believe HealthKart’s management team and robust brand portfolio will be instrumental in driving significant growth and value creation,” Vinayak said.

“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.

Avendus Capital was the exclusive financial advisor for the transaction.

According to Statista, the digital health market in India is likely to grow from around $5.34 billion in 2024, at a CAGR of 13.14% to $9.90 billion by 2029.


Here’s a structured list based on the information provided in the article:

Startup

  • Name: HealthKart
  • Founded: 2011
  • Founder: Sameer Maheshwari
  • Focus Areas: Sports nutrition, dietary supplements, kids’ nutrition
  • Brands Operated: MuscleBlaze, HK Vitals, Gritzo
  • Number of Offline Stores: Over 200 across more than 90 cities in India

Funding Details

  • Latest Funding Amount: $153 million
  • Valuation: Approximately $500 million (up from $370 million in 2022)
  • Funding Series: Secondary funding round

Investors

  1. Lead Investors:
    • ChrysCapital
    • Motilal Oswal Alternates
  2. Participating Investors:
    • Neo Group
    • A91 Partners (existing backer)

Financial Advisor

  • Advisor: Avendus Capital

Key Comments from Investors

  • Arpit Vinayak (ChrysCapital): Emphasized the growth potential in the Indian sports nutrition market and highlighted MuscleBlaze’s robust position and HK Vitals’ quality nutraceuticals.
  • Rohit Mantri (Motilal Oswal Alternates): Stated that HealthKart’s commitment to high-quality dietary supplements aligns with their mission of promoting healthier lifestyles.

Employee Benefit

  • ESOP Buyback: Rs 55 crore ($6.5 million) for current and former employees.

This structured information outlines the essential details regarding the funding, investors, the startup, and its founders.

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