healthtech

HealthKart Secures $153 Million in Funding from ChrysCapital and Motilal Oswal Alternates

• ByStartupStory     |    November 18, 2024

Healthtech startup HealthKart has raised $153 million (INR 1,291 crore) in a funding round co-led by venture capital firm ChrysCapital and asset management platform Motilal Oswal Alternates (MOA). The round also saw participation from Neo Group and existing investor A91 Partners, the startup revealed in a statement.

The funds will be directed towards strengthening HealthKart’s “power” brands and expanding its international market presence. Additionally, the startup announced an employee ESOP buyback worth INR 55 crore, benefiting both current and former employees.

Welcoming the new investors, HealthKart’s CEO and founder, Sameer Maheshwari, said, “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.”

ChrysCapital’s vice president, Arpit Vinayak, highlighted the growth potential of the Indian sports nutrition market. He said, “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.”

Founded in 2011 by Sameer Maheshwari and Prashant Tandon, HealthKart initially served as an ecommerce platform offering health supplements and pharmaceutical drugs. It sold its generic drug business to 1MG in 2015 and its epharmacy division to the Tata Group in 2021.

In 2015, the company transitioned to an omnichannel consumer nutrition platform, hosting leading digital-first brands such as MuscleBlaze, HK Vitals, and TrueBasics. The company claims to operate India’s largest online nutrition marketplace.

HealthKart reported significant financial growth, with a 70% increase in revenues in FY23, reaching INR 832.4 crore, compared to INR 490.8 crore in FY22. It also reduced its net loss by 50%, from INR 330.1 crore in FY22 to INR 164.7 crore in FY23. HealthKart further claims to have achieved EBITDA profitability in FY24 and surpassed revenues of INR 1,000 crore in the same fiscal year.

The transaction was facilitated by Avendus Capital, acting as the exclusive financial advisor.

Before this funding round, HealthKart had raised $135 million in 2022 in a round led by Temasek. With prior investments from Sofina Ventures, Peak XV Partners, and Intel Capital, the startup had secured total funding of $200 million before this round.

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