Marico buys D2C brand Plix for Rs 369 crore as space sees consolidation

The buyout comes at a time when the direct-to-consumer space continues to see consolidation.

FMCG major Marico Limited will be acquiring 58 percent in Plix, a plant-based nutrition brand, for Rs 369.01 crore, it said in a stock exchange filing on July 26.

The buyout comes at a time when the direct-to-consumer (D2C) space continues to see consolidation with smaller players being bought out by larger companies. In January, ITC said it was acquiring Yoga Bar, a healthy snacking company. Last month, beauty and skincare brand VLCC said it will acquire men’s grooming brand Ustraa in a secondary buyout and a share swap deal.

Founded in 2018 by Rishubh Satiya and Akash Zaveri, Plix’s products help in weight management and better the health of hair. The company also sells sleep supplements.

While Marico had already bought 32.75 percent in Satiya Nutraceuticals Private Limited which owns and operates The Plant Fix- Plix, it said the acquisition of the remaining portion, or 25.25 percent, will be completed by May 2025.

“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 Saugata Gupta, MD and CEO, Marico Limited.

Plix's existing leadership team will continue to run the brand independently.

"...It is heartening to see that Marico continues to be seen as the strategic investor of choice for founders who want to build sustainable businesses.”

Over the past years, Marico has been on an acquisition spree. The FMCG major bought Beardo, a men's grooming company, in 2020 and in the next year it acquired a majority stake in ayurvedic beauty brand Just Herbs. It continued shopping and bought True Elements, a breakfast and snacks brand in 2022.

“Plix has become one of the largest plant-based nutrition brands online with an innovative blend of health, quality, taste and convenience. In partnership with Marico, we will prioritize strengthening the brand’s equity and expedite growth by expanding into new categories and channels," said Rishubh Satiya & Akash Zaveri, co-founders of Plix said.

Ths startup, which has raised over $5 million from Guild Capital and RPSG Capital Ventures, currently thrives as a D2C brand and depends on third-party e-commerce marketplaces, but plans to ramp up its offline presence over the next few years by leveraging Marico's presence.