HealthKart Bags $153 Mn From ChrysCapital, Motilal Oswal Alternates

Healthtech startup HealthKart has raised $153 Mn (INR 1,291 Cr) in a funding round co-led by venture capital (VC) firm ChrysCapital and asset management platform Motilal Oswal Alternates (MOA). 

Besides, the funding round also saw participation from Neo Group and HealthKart’s existing investor, A91 Partner. In a statement, the startup said that it will continue to focus on strengthening its “power” brands and work on expanding its presence across international markets.

The startup also announced an employee ESOP buyback worth INR 55 Cr from its 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,” the startup’s CEO and founder Sameer Maheshwari said. 

Avendus Capital served as the exclusive financial advisor for the transaction.

Founded in 2011 by Maheshwari and Prashant Tandon as HealthKart Plus, the startup initially acted as an ecommerce platform selling health supplements as well as pharmaceutical drugs. It sold its generic drug business to 1MG in 2015 and its epharmacy wing to the Tata Group in 2021. 

The company’s current platform was initiated in 2015 and operates an omnichannel consumer nutrition platform. The startup claims to operate India’s largest online nutrition marketplace and is home to many digital-first brands such as MuscleBlaze, HK Vitals and TrueBasics. 

“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… HealthKart’s exceptional management team, strong brand portfolio, omnichannel distribution, and superior marketing capabilities provide the ideal foundation for significant growth and value creation,” ChrysCapital’s vice president Arpit Vinayak said. 

In its last disclosed financials, the company reported a 70% surge in its revenues to INR 832.4 Cr in fiscal year 2022-23 (FY23) from INR 490.8 Cr in the previous fiscal year.

Its net loss for the fiscal year stood at INR 164.7 Cr, down 50% from the INR 330.1 Cr loss it incurred in the previous fiscal year.

In a statement, HealthKart claims that it achieved EBITDA profitability for FY24. Besides, it claims to have seen its revenues surged past the INR 1,000 Cr mark in the fiscal.   

It is pertinent to mention that HealthKart last raised $135 Mn in a funding round led by Temasek back in 2022. Prior to this current round, the startup had raised a total funding of around $200 Mn from the likes of Sofina Ventures, Peak XV Partners, and Intel Capital among its investors.

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