HealthKart, an omnichannel nutrition products retailer, has reported a 69.5% year-on-year growth in its operating revenue, reaching Rs 832.48 crore in the fiscal year ending March 31.
This marks a substantial rise from the flat growth observed during FY18-FY21. The company's revenue from operations alone grew by 60.45%, from Rs 491 crore in FY22 to Rs 832 crore in FY23.
Reduction in net loss
As the company successfully increased its revenue, Its net loss also nearly halved to Rs 164.71 crore. HealthKart managed to keep its total expenses in check, growing only 21.5% to Rs 1,016.5 crore. This indicates an improvement in the company's unit economics.
The largest expense was raw material costs, which increased to Rs 341.6 crore in FY23 from Rs 197.4 crore in the previous year.
HealthKart's advertising and promotional expenses climbed 56% year-on-year to Rs 188.63 crore. This increase was part of a strategic move to strengthen brand-building and marketing efforts, especially after raising $135 million in December 2022 in a Series H funding led by Temasek and the participation from A91 Partners and Kae Capital.
Expansion and market position
The company, which currently operates about 250 physical stores, up from 140 last year, has expanded its distribution network significantly. It sells products through its online channels and third-party e-commerce platforms like Amazon and Flipkart.
HealthKart owns eight brands in the nutritional products space, including MuscleBlaze and TrueBasics. Notably, MuscleBlaze holds a 25% share of India’s sports nutrition market, and HKVitals has a 20% share of the online health supplement market.
The current landscape of the industry
The Indian dietary supplements market size reached Rs 157.4 Billion in 2023. It is projected to expand to INR 491.4 Billion by 2032, growing at a CAGR of 13.49% during 2024-2032. This growth is indicative of the increasing demand for dietary supplements in India.
It's worth mentioning that the market's growth is primarily driven by heightened health consciousness among consumers. Factors like changing eating habits, lack of physical activity, and rising sedentary lifestyles have led to an increase in lifestyle diseases such as diabetes, high blood pressure, obesity, and cardiovascular problems.
This has, in turn, heightened awareness about nutritional requirements and the importance of supplements to fill nutritional gaps.
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