Hindustan Unilever acquires majority stake in D2C nutrition brand OZiva

Hindustan Unilever Limited has acquired a majority stake in direct-to-consumer (D2C) nutrition brand OZiva via a strategic investment, according to a regulatory filing by HUL in the National Stock Exchange (NSE).

The board at HUL has entered into a definitive agreement to acquire a 51% stake in OZiva with the first tranche at a cash consideration of Rs 264.28 crore. The company will acquire the remaining 49% stake after the expiry of three years from 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 necessary capabilities and support to scale up,” OZiva said in the filing.

The six-year-old firm provides plant-based nutrition products with a portfolio across categories such as women’s health, skin, hair, men’s health, and general wellness. The Mumbai-based company also provides its customers with access to personalized diet and fitness consultations, nutritional and fitness content, and community-based events through its technology platform.

OZiva has raised a total of $17 million to date including a $12 million Series B round from Eight Roads Ventures and Matrix partners in March last year. As per Fintrackr’s estimates, the company was valued at a $80 million valuation during the last round.

During FY22, the company’s revenue from operations grew 72% to Rs 124.17 crore in FY22 from Rs 72.1 crore in FY21. It booked a loss of Rs 9.77 crore in FY21 against a profit of Rs 1.59 crore in FY20. The loss/profit figures for FY22 could not be ascertained.

Hindustan Unilever has passed another board resolution to acquire 19.8% of the stake in Wellbeing Nutrition for a cash consideration of Rs 70 crore. Founded by Avnish Chhabria, Wellbeing Nutrition is a whole-food nutrition company that uses plant-based ingredients to deliver wellness to individuals. The company deals in products across daily wellness, sleep, headaches, 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 looking for $10 million in funding for further expansion. Wellbeing Nutrition’s revenue from operations grew 3.7X to Rs 19.4 crore in FY22 from Rs 5.3 crore in FY21.