HealthKart closes $153 million secondary round, announces $6.5 million ESOP buyback

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Omnichannel health supplement platform HealthKart has raised $153 million (approx. Rs 1,270 crore) through a secondary funding round led by ChrysCapital and Motilal Oswal Alternates, marking one of the largest such rounds for a consumer startup this year.

Neo Group and existing investor A91 Partners participated in the round, which facilitated the purchase of shares from early investors and existing stakeholders. A secondary transaction involves the sale of existing shares by early investors or employees to new investors, providing liquidity without the company issuing new shares.

HealthKart also counts Peak XV, Temasek, Sofina, Kae Capital, Intel Capital and wealth manager IIFL among its backers.

The deal values the Gurugram-based firm at approximately $500 million in this funding round, per reports, up from its $370 million valuation during its previous capital raise in 2022.

In addition to the funding, HealthKart announced its first-ever employee ESOP buyback worth Rs 55 crore ($6.5 million). “The ESOP buyback program is a meaningful step in aligning the success of our team with the company’s long-term vision and rewarding those who played a critical role in building HealthKart," said Sameer Maheshwari, Founder and CEO of HealthKart.

Founded in 2011, HealthKart, which was spun out of HealthkartPlus (later rebranded as 1MG), operates over 200 stores across over 90 cities alongside its online platform.

In FY24, the firm claims to have surpassed Rs 1,000 crore in revenue and achieved full-year Ebitda profitability. The company, known for its digital-first brands like MuscleBlaze, HKVitals, and Gritzo, plans to focus on strengthening its portfolio and expanding internationally, it said.

Arpit Vinayak, Vice-President at ChrysCapital, noted the company’s strong market positioning.

“The Indian sports nutrition market is poised for growth, and HealthKart’s exceptional management team, omnichannel strategy, and leading brands like MuscleBlaze and HKVitals offer significant potential for long-term value creation,” he said.

Rohit Mantri, Co-Head and Managing Director of Private Equity at Motilal Oswal Alternates, highlighted HealthKart’s track record. “The company has built market-leading consumer health brands and continues to drive innovation in dietary supplements, sports nutrition, and wellness products, aligning with our objective of promoting healthier lifestyles."

Avendus Capital was the exclusive financial advisor for the transaction.