Indian Wellness Startup HealthKart Secures $500M Valuation in New Investment

Indian nutrition and wellness startup HealthKart has secured a valuation of around $500 million in a new all-secondary investment round of $153 million. The funding was co-led by private equity firms ChrysCapital and Motilal Oswal, with Avendus Capital serving as the financial advisor.

A91 Partners and asset manager Neo Group also participated in the round. This represents one of the largest investment deals for an Indian consumer startup this year. Prior to this, HealthKart was valued at $350 million.

The startup, founded 13 years ago, spun out from the online pharmacy startup 1MG. It primarily sells protein supplements and health accessories in the Indian market. HealthKart reported revenue of $118.5 million for the financial year ended March 2024, cementing its position as India’s largest consumer nutrition platform.

As part of the deal, some of HealthKart’s older investors, including Peak XV (formerly Sequoia India and Southeast Asia), fully exited the startup. Peak XV sold its shares worth about $120 million, which it had initially bought for less than $30 million.

Other key investors in HealthKart include Temasek, Sofina, and wealth manager IIFL. The startup also announced it is buying back shares worth $6.5 million from its employees.

“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,” said Arpit Vinayak, VP at ChrysCapital, in a statement.

This latest investment underscores the growing demand for health and wellness products in the Indian market, as consumers become more conscious of their nutritional needs. HealthKart’s ability to capitalize on this trend has helped it emerge as a leading player in the segment.