SUMMARY
The funding round was led by Singaporean wealth fund Temasek with participation from A91 Partners and Kae Capital
The startup will use the funding to expand international operations and ramp up its offline distribution
The Indian healthtech market is projected to grow to a $21 Bn space by 2025
Healthtech startup HealthKart has raised $135 Mn (INR 1,103.9 Cr) in a funding round led by Singaporean wealth fund Temasek. The round also saw participation from A91 Partners and Kae Capital.
The announcement comes days after Inc42 reported that HealthKart raised $65.7 Mn (INR 536.5 Cr) in a Series H round led by Temasek. The latest round seems to be a part of the same funding round.
According to Economic Times, HealthKart was valued at INR 3,000 Cr (approximately $370 Mn) in the latest funding round.
The startup will use the funding to scale its in-house direct-to-consumer (D2C) brands and expand its health and supplement offerings to new categories and new customers. The capital will also be deployed towards expanding the startup’s international operations and ramping up offline distribution.
Avendus Capital served as the exclusive financial advisor for the transaction.
“We are delighted to partner with Temasek and A91 Partners in our mission to deliver innovative, high quality, yet affordable preventive care solutions to Indian consumers…With HealthKart’s R&D capabilities and omni-channel distribution infrastructure, we are excited to lead the way,” said HealthKart CEO and founder Sameer Maheshwari.
VT Bharadwaj, general partner at A91 Partners, said, “We are excited to support Sameer and his team as they double down on their core offering, and expand the health and supplement basket to new categories (high protein food) and new customers (kids).”
Founded in 2011 by Maheshwari and Prashant Tandon as HealthKart Plus, the startup hived off its generic drug business into 1MG in 2015 and sold 100% of its stake in the epharmacy to the Tata Group in 2021.
In its current form, HealthKart was founded in 2015 and currently 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.
HealthKart had last bagged $25 Mn in Series G round from Sofina in May 2019.
The startup operates more than 140 HealthKart stores spread across 50+ cities. It claims that its products are used by more than a million consumers every month and are sold across multiple channels including websites, brick and mortar grocers and chemists.
HealthKart expects to clock an annual run revenue run rate (ARR) of more than INR 1,000Cr. Besides, it claims to be the numero uno player in the sports nutrition market (MuscleBlaze) and online health supplement space (HKVitals).
As per HealthKart, MuscleBlaze claims to own a market share of 25% in India’s burgeoning sports nutrition market, while HKVitals claims to have approximately 20% share in the online health supplement market.
HealthKart reported a loss of INR 41 Cr in the financial year 2021-22 (FY22), while its revenue stood at INR 328 Cr.
The startup competes with players like SastaSundar, Bright LifeCare, and Panaceutics.
The announcement comes at a time when the healthtech as well as the nutrition and wellbeing space are witnessing hectic developments. In November, PharmEasy picked up an undisclosed amount of debt funding from EvolutionX Debt Capital.
This also comes close on the heels of Bengaluru-based HealthifyMe laying off 150 employees across positions such as subject matter expert, quality analytics, product and marketing. Last month, pharma giant Mankind also picked up a majority stake in D2C health and wellness brand Upakarma Ayurveda.
As per Inc42, the Indian healthtech market is projected to grow to $21 Bn by 2025.
