SUMMARY
Marico acquired a 32.75% stake in Plix on July 26 via primary infusion and secondary buyouts
The acquisition of the remaining 25.25% of the paid-up share capital of the D2C brand will be completed by May 2025
The deal will enable Marico to expand its total addressable market in the nutrition segment and ramp up its presence in the health and wellness category
FMCG major Marico on Wednesday (July 26) said that it has signed a definitive agreement to acquire a majority stake (58%) in D2C nutrition brand Plix for INR 369.01 Cr.
In a regulatory filing with the bourses, the consumer goods company said that the cash-only deal will be executed in multiple tranches.
On Wednesday (July 26), the company acquired a 32.75% stake in Plix’s parent, Satiya Nutraceuticals, via primary infusion and secondary buyouts. With this, Marico now has a majority control over Plix’s board, and the latter has now become a subsidiary of the FMCG giant.
Meanwhile, the acquisition of the remaining 25.25% of the paid-up share capital of the D2C brand will be completed by May 2025 and will be subject to certain conditions. In addition, the FMCG major has also earned the right to acquire the remaining 42% stake in Satiya Nutraceuticals at a later date.
The deal will enable Marico to expand its total addressable market in the nutrition segment, and ramp up its presence in the health and wellness category. On the other hand, the plant-based D2C brand will leverage Marico’s resource base to bolster its offline presence over the next few years.
“In line with our strategy to accelerate our diversification journey, the investment in Plix not only expands our total addressable market in value-added wellness foods and nutrition segments, but also brings another digital-first brand with a distinct value proposition into our fold,” said Marico’s managing director and chief executive officer (CEO) Saugata Gupta.
In a joint statement, Plix’s cofounders Rishubh Satiya and Akash Zaveri said, “We are delighted to partner with Marico… In partnership with Marico, we will prioritise strengthening the brand’s equity and expedite growth by expanding into new categories and channels.”
Founded in 2020 by Satiya and Zaveri, Plix Life is a Mumbai-based D2C startup that sells a wide range of plant-based nutrition products, such as workout supplements, ingestible sunscreens, hair growth serums and skincare products.
The startup last raised $5 Mn as part of its Series A funding round from Guild Capital and RPSG Ventures in December 2021. Since its inception, the startup has steadily grown its turnover. In the financial year 2019-20, it reported a turnover of INR 10.92 Cr, which grew to INR 41.58 Cr in FY21. The company closed FY22 with a turnover of INR 106 Cr.
The D2C brand competes with the likes of OZiva, Setu Nutrition, and Fast&Up, among others.
At the beginning of the year, Plix was selling more than 60 SKUs across six categories through its own website, ecommerce marketplaces and offline stores. It has so far catered to more than 15 Lakh customers across the country.
It is pertinent to note that this is not Marico’s first acquisition in the D2C space. In the past couple of years, the FMCG giant has bolstered its play in the digital space with the acquisition of majority stakes in D2C Ayurveda brand Apcos Naturals in 2021, and healthy snacks startup True Elements in 2022.
Marico has also made significant investments in D2C startups such as Beardo and Revofit. Last year, it was also reported that the consumer goods company was also exploring building a Thrasio-style model for its D2C brands.
With this, the company has further ramped up its play in the health and wellness category, which has seen a flurry of acquisitions by FMCG players in the past year. Be it ITC’s acquisition of Yoga Bar or Hindustan’s Unilever picking up stakes in OZiva and Wellbeing Nutrition, the space has emerged as the new battleground for the FMCG giants.
At the centre of this is the burgeoning health and wellness category, which has made rapid strides in the past few years on the back of increasing penetration of ecommerce and the growth of D2C startups.
As per Inc42, India is home to more than 50,000 digital-first brands, with the homegrown D2C economy projected to grow to a $300 Bn market opportunity by 2030.
