HealthKart raises $153 million in funding, valuation hits $500 million

Homegrown fitness supplement brand HealthKart has raised $153 million in a secondary funding round led by private equity firm ChrysCapital and Motilal Oswal Alternates.

The round also saw participation from Neo Group and existing backer A91 Partners.

Valuations hits $500 million

According to media reports, the latest investment values HealthKart at approximately $500 million, a jump from its $370 million valuation during its 2022 funding round.

Founded in 2011 by Sameer Maheshwari, HealthKart operates popular digital-first brands such as MuscleBlaze, HK Vitals, and Gritzo, focusing on sports nutrition, dietary supplements, and kids' nutrition.

The company also manages over 200 offline stores across more than 90 cities in India.

ESOP buyback

Apart from the funding, HealthKart also announced its first-ever employee ESOP buyback worth Rs 55 crore ($6.5 million), benefiting both current and former employees.

“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," said Sameer Maheshwari.

Investors comment

“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. MuscleBlaze stands out as a leading brand, supported by a robust mix of proprietary channels, while HK Vitals offers high-quality nutraceuticals,” said Arpit Vinayak, VP of ChrysCapital.

“We believe HealthKart’s management team and robust brand portfolio will be instrumental in driving significant growth and value creation,” Vinayak said.

"HealthKart’s commitment to high-quality and affordable dietary supplements perfectly aligns with our mission of promoting healthier lifestyles," said Rohit Mantri, co-head of private equity at Motilal Oswal Alternates.

Avendus Capital was the exclusive financial advisor for the transaction.

According to Statista, the digital health market in India is likely to grow from around $5.34 billion in 2024, at a CAGR of 13.14% to $9.90 billion by 2029.