Fast-Moving Consumer Goods (FMCG) major Hindustan Unilever Limited (HUL) announced the acquisition of two D2C brands - OZiva and Wellbeing Nutrition. With the acquisition, the company will foray into the health and well-being category.
Investments into D2C brands continued throughout the year even as funding for start-ups dried up. HUL said the well-being category has a total potential market size of ₹30,000 crore.
“We are delighted to welcome OZiva and Wellbeing Nutrition to the HUL family and our portfolio of purpose-led brands. These strategic investments give us an entry into the fast-growing health and well-being category. They align strongly with our mission to improve the health and wellbeing of consumers and empower people to take charge of their health through solutions that they can trust,” Sanjiv Mehta, CEO and Managing Director, HUL.
D2C sector
businessline reported in September that investments into (D2C) the sector continued to flow in the first five months of this fiscal. D2C brands received a $253.8 million investment during this period which is already 30 percent of the total funding bagged in the whole of FY22.
According to Tracxn, a market intelligence and analytics platform, D2C brands received $796.8 million in investment in FY22 and $363.3 million in FY21.
OZiva - Zywie Ventures Private Limited is a plant-based consumer wellness brand launched in 2016 and HUL will acquire a 51 per cent equity stake through a combination of primary infusion and secondary buyouts. The balance of 49 per cent will be acquired at the end of 36 months based on pre-agreed valuation criteria.
Wellbeing Nutrition - Nutritionalab Private Limited was founded in 2019 and HUL will acquire a 19.8 per cent equity stake in the company through a combination of primary infusion and secondary buyouts.
HUL said both transactions are expected to be completed in next 1-3 months subject to customary closing conditions.
“HUL has a successful track record of building categories through market development. We are excited to work with the founders of OZiva and Wellbeing Nutrition to grow the businesses further by leveraging our complementary expertise and capabilities,” said Ritesh Tiwari, CFO, of HUL