Oziva is on the verge of acquisition by Hindustan Unilever
- ByStartupStory | December 8, 2022
India’s FMCG majors have been picking up direct-to-consumer brands with some regularity since the start of the pandemic. Now, Hindustan Unilever and others are in talks to acquire Oziva, a plant-based supplement brand. But will a valuation mismatch stand in the way of a deal, Samidha Sharma & Sagar Malviya have all the details. This and other Thursday AM ETtech exclusives are in today’s edition of the Morning Dispatch.
Hindustan Unilever (HUL) has held talks to acquire plant-based supplement brand Oziva, multiple people in the know said, signaling the possible start of a wave of consolidation in the direct-to-consumer (D2C) brand market.
Oziva, which sells nutrition and fitness products across categories such as women’s health, skin, hair, men’s health and general wellness, competes with the likes of Amway, GNC and unbranded supplements from Indian pharma companies.
Oziva had approached other consumer goods companies as well, including Dabur and Tata Consumer, but those discussions also stalled over a valuation mismatch. “They have been in advanced discussions with HUL, but their sales numbers have dropped from the peak which may impact the valuation and overall transaction,” said a person familiar with the talks.
By the numbers: In an interview with ET last year, the company said its annualized revenue grew fourfold from the previous year, and that it was aiming to top Rs 500 crore in the next three years. Sources said Oziva was clocking around Rs 12 crore in monthly sales and would have likely closed at Rs 100-150 crore in annual sales for FY22. FMCG majors eye D2C brands: Marico, ITC, and HUL have been investing in D2C brands that saw huge momentum during the pandemic when online shopping skyrocketed.
Follow Startup Story
Related Posts
