ChrysCapital to Acquire 20% Stake in HealthKart, Valuing the Company at $450 Mn

As part of the transaction, ChrysCapital is poised to invest around $90 million into HealthKart.

ChrysCapital, one of India’s leading private equity firms, is set to acquire a 20% stake in Bright Lifecare, the parent company of omnichannel health products retailer HealthKart.

The acquisition will value HealthKart at approximately $450 million (INR 3,700 crore), according to sources familiar with the matter. The deal is in its final stages and is expected to be signed soon.

ChrysCapital to Invest $90 Million

As part of the transaction, ChrysCapital is poised to invest around $90 million into HealthKart.

The move is part of ChrysCapital’s broader strategy to target home-grown consumer brands for potential investments or acquisitions.

Sources also revealed that Peak XV (formerly Sequoia Capital), an existing investor in HealthKart, will sell its stake in this funding round.

This development comes after HealthKart raised $135 million (INR 1,100Cr) in its previous funding round in 2022, led by Singapore's sovereign wealth fund, Temasek, at a valuation of $370 million.

ChrysCapital had previously expressed interest in acquiring a stake in HealthKart earlier this year.

HealthKart's Background

HealthKart, founded in 2011 by Harvard and Stanford graduates Sameer Maheshwari and Prashant Tandon, is India’s largest nutrition platform.

The company offers a broad range of supplements and nutraceuticals through its in-house brands, including MuscleBlaze, TrueBasics, HK Vitals, bGreen, Nouriza, Gritzo, and The Protein Zone.

With a strong offline presence, HealthKart operates 250 stores across 50 cities, in addition to its online platform. The startup is backed by several prominent investors, including Sofina, A91 Partners, Kae Capital, IIFL, and Omidyar Network.

HealthKart has raised more than $200 million to date. Its founders also co-founded 1mg, an online pharmacy spun off as a separate entity in 2015 and sold to Tata Group in 2021.

While HealthKart declined to comment on the recent developments, the company has been steadily growing.

In the fiscal year 2023, it reported a 70% year-on-year increase in operating revenue, reaching INR 832 Cr, while its net loss nearly halved to INR 165 Cr.

The company’s advertising and promotional expenses rose 56% year-on-year to INR 188.63 crore, as it ramped up brand-building and marketing efforts.

HealthKart competes with other major players in India’s health and wellness sector, including PharmEasy, Netmeds, Tata 1mg, HyugaLife, Nutrabay, and Healthians.

India’s Growing Dietary Supplement Market

India’s dietary supplement market, valued at $4 billion in 2020, is expected to grow to $10 billion by 2026, according to Vitafoods India.

The vitamins and minerals segment is also forecasted to see significant growth, with revenues projected to reach $2.63 billion by 2024 and an annual growth rate of 7.71% between 2024 and 2028.

The health and wellness sector has seen increased consolidation following the COVID-19 pandemic.

Traditional conglomerates and e-commerce giants have entered the online pharmacy space, with Walmart-owned Flipkart acquiring Kolkata-based SastaSundar Marketplace, and Reliance Industries purchasing a 60% stake in Netmeds for INR 620 Cr in 2020.

E-pharmacy chain PharmEasy is also supported by global investors, including Temasek, Prosus, Goldman Sachs, and the Canadian pension fund CDPQ.

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