Hindustan Unilever Limited has acquired a majority stake in direct-to-consumer (D2C) nutrition brand OZiva through a strategic investment, according to a regulatory filing by HUL on the National Stock Exchange (NSE).
HUL’s board has reached a definitive agreement to acquire a 51% stake in OZiva with the first tranche at a cash price of Rs 264.28 crore. The company will acquire the remaining 49% stake three years after the completion of the first tranche.
“The current OZiva team led by Aarti Gill and Mihir Gadani will continue to operate all functions of the business. HUL will have representation on the Board and will provide the necessary capabilities and support to scale,” OZiva said in the presentation.
The six-year-old firm offers plant-based nutrition products with a portfolio in categories such as women’s health, skin, hair, men’s health and general wellness. The Mumbai-based company also provides its clients with access to personalized diet and fitness consultations, nutritional and fitness content, and community events through its technology platform.
OZiva has raised a total of $17 million to date, including a $12 million Series B Round from the partners of Eight Roads Ventures and Matrix in March of last year. according to fintrackrAccording to estimates, the company was valued at $80 million during the last round.
During FY22, the company’s operating income grew by 72% to Rs 124.17 crore in FY22 from Rs 72.1 crore in FY21. It posted a loss of Rs 9.77 crore in FY21 against a profit of Rs 1.59 crore in FY20. Profit/loss figures for FY22 could not be ascertained.
Hindustan Unilever passed another board resolution to acquire 19.8% stake in Wellbeing Nutrition for cash consideration of Rs 70 crore. Founded by Avnish Chhabria, Wellbeing Nutrition is a whole food nutrition company that uses plant-based ingredients to bring wellness to people. The company markets products in the daily wellness, sleep, headache, gut health, hair loss, and skin care segments.
In June 2021, the company raised $2.2 million in a Series A round led by Fireside Ventures and was reportedly seeking $10 million in funding for further expansion. Revenue from Wellbeing Nutrition operations grew 3.7 times to Rs 19.4 crore in FY22 from Rs 5.3 crore in FY21.
