Gurugram-based foodtech unicorn Zomato, on Tuesday, announced its foray into health and dietary supplements through a ‘Made in India’ brand soon to be available on the Zomato platform. The launch date of the products is not yet known.
Zomato CEO Deepinder Goyal wrote on Twitter that the new products have gone through the highest possible level of quality checks.
The company’s foray into the nutraceuticals segment comes amid the Covid-19 pandemic when consumers have grown more conscious of the need for preventive healthcare, related to immunity and personal care.
According to an Inc42 Plus report titled, India’s Healthtech Landscape In A Post-Covid-19 World, the Indian healthcare market is expected to grow 4x, from $144 Bn in 2019 to $638 Bn by 2025. The preventive healthcare category, which includes healthcare startups and D2C health food and supplement brands, is expected to grow at a compound annual growth rate (CAGR) of 13% between 2020-25 and is expected to reach a market size of $170 Bn by 2024.
Given its massive fleet of over 1 lakh delivery workers and pan-India presence, Zomato’s entry in the health foods segment could disrupt the market in India, which has several homegrown and international D2C brands such as Onelife, HealthKart, GNC’s Guardian Healthcare, Mosaic Wellness, Possible (formerly known as Truweight Wellness) and Wellversed.
The company is currently valued at $5.4 Bn after it raised $250 Mn from existing investors Tiger Global, Kora and others. Zomato is also expected to go for an initial public offering (IPO) this year. Last month, the company increased its paid-up capital by 3x in preparation for raising funds in the near future. The company’s paid-up capital has increased from INR 535 Cr to INR 1,448 Cr.
The entry into a new vertical comes as Zomato is once again in the public limelight for the wrong reasons. Last week, a Zomato user had accused one of its delivery partners of physical assault. The user, a model and Instagram influencer named Hitesha Chandranee had filed a police complaint against the delivery worker identified as Kamaraj. Kamaraj was arrested and subsequently released on bail and is now under temporary suspension from Zomato with a police case against him.
Earlier this week, the Bengaluru police booked Chandranee under Sections 355 (assault), 504 (insult) and 506 (criminal intimidation) of the Indian Penal Code (IPC), based on a complaint filed by Kamaraj. Zomato had stated that it would back the legal expenses of Kamaraj during the investigation, as well as the medical expenses of Chandranee.