Noida-based Jubilant Foodworks Limited has entered into the Share Subscription Agreement and Shareholders’ Agreement, to acquire a 25.02% stake in Wellversed Health Pvt Ltd for Rs 10 crore.
This investment reflects the company’s intent of making strategic investments in promising start-ups and emerging businesses and is in line with the stated goal of building a multi-brand and multi-country food business powered by technology, the company said in a BSE filing.
“This will be an investment by the Company in Wellversed – a nutrition company offering a variety of food products tailored for specific nutrition and dietary needs including keto, gluten-free, vegan, high-protein, diabetic and immunity,” the company said.
Since the pandemic, D2C start-ups have been seeing a major boom as consumers shifted online for entertainment purposes. This led to the discovery of various new brands. D2C start-ups including Sequoia-backed Mamaearth, Elevation Capital-backed SUGAR Cosmetics, and Wow Skin Science saw their revenue and valuations jump during this time.
While Mamaearth's valuation touched US $ 700 million, SUGAR Cosmetics and Wow Skin Science revenues crossed Rs 100 crore mark. Multinationals operating in the fast-moving consumer goods (FMCG) segment have also been digitizing themselves. While ITC Ltd. is focussing on personalizing its online platform, oil-maker Marico and Tata Consumer Product Ltd. (TCPL) have been on an acquisition spree.
TCPL acquired snack brand Soulfull, while Tata Digital acquired Mukesh Bansal's CureFit and grocery delivery platform Bigbasket. Marico invested in D2C men's grooming brand Beardo and acquired 60 percent stake in Apcos Naturals, owner of ayurvedic beauty brand Just Herbs.