HealthKart Raises $65.7 Mn Funding From Temasek, A91 Partners

SUMMARY

As per regulatory filings, HealthKart’s board issued 10 equity shares and 3,08,547 Series H compulsory convertible preference shares (CCPS) at a price of INR 17,388 apiece

Temasek infused INR 389.46 Cr in the startup while A91 Partners pumped in INR 147.06 Cr in the funding round

The startup has also increased the size of its employee stock ownership plan (ESOP) pool by introducing additional 35,234 stock options worth about INR 61.3 Cr

Healthtech startup HealthKart has reportedly raised $65.7 Mn (INR 536.5 Cr) in Series H funding round led by Temasek. A91 Partners has also participated in the round.

HealthKart’s board issued 10 equity shares and 3,08,547 Series H compulsory convertible preference shares (CCPS) at a price of INR 17,388 apiece to raise money from Temasek and A91 Partners as per the regulatory filings.

Temasek infused INR 389.46 Cr in the startup while A91 Partners pumped INR 147.06 Cr in the funding round.

Besides that, HealthKart has also increased the size of its employee stock ownership plan (ESOP) pool by introducing additional 35,234 stock options worth about INR 61.3 Cr. With this, it has increased total stock options to 91,514 and simultaneously increased the value of ESOP pool to $20 Mn.

The development has come almost three years after HealthKart secured $25 Mn in Series G round from Sofina.

Founded in 2011 by Sameer Maheshwari, HealthKart is an omnichannel healthcare platform. It operates a website and also has a retail presence across India.

Further, HealthKart manufactures eight nutritional brands–MuscleBlaze, The Protein Zone, TrueBasics, HKVitals, bGreen, Nouriza, and Gritzo. In 2015, it separated its generic drug business into a different entity called HealthKartPlus, which was later rebranded into 1MG.

In 2021, Tata Digital bought 100% stake in 1MG and converted it into Tata 1mg Technologies.

As per Tofler, HealthKart recorded INR 328 Cr as revenue during the financial year 2021-22 against INR 352 Cr recorded in the previous financial year. Meanwhile, its losses stood at INR 41 Cr as compared to INR 198 Cr incurred in the preceding financial year.

In the healthtech segment, it competes with the likes of SastaSundar, Bright LifeCare and Panaceutics, among others.

According to an Inc42 report, India’s healthtech market is projected to grow to $21 Bn space by 2025. The report states that homegrown healthtech startups together bagged nearly $700 Mn in the first half of 2022 (H1 2022) as compared to $800 Mn raised by startups in H1 2021.

In the last few months, a series of developments have taken place in the healthtech sector. This month, PharmEasy’s parent firm API Holdings received an undisclosed amount of debt funding from EvolutionX Debt Capital.

Earlier, PharmEasy was reportedly issuing rights issue to raise up to INR 759 Cr via convertible notes.

In September, healthtech startup HealthifyMe posted that its revenue climbed up by 115% to INR 185.2 Cr in financial year (FY22) as against INR 86 Cr in the preceding financial year. Meanwhile, its losses rose by more than 8x to INR 157 Cr in the fiscal year 2021-22.

During the same time period, healthtech unicorn Innovaccer laid off 90 employees mostly from the tech department as a part of cost-cutting measures.