USV Private Ltd Acquires Majority Stake in Wellbeing Nutrition in Major ₹1,583 Crore Deal
In a significant development within India's healthcare and wellness sector, multinational pharmaceutical and biotechnology giant USV Private Ltd has executed a major acquisition, securing approximately 79% stake in the prominent nutraceutical company Wellbeing Nutrition. This all-cash transaction values Wellbeing Nutrition at an impressive ₹1,583 crore, as officially confirmed by both companies in a joint statement released on Thursday.
Strategic Rationale and Management Continuity
The acquisition is strategically designed to enable Wellbeing Nutrition to significantly deepen its penetration into doctor- and pharmacy-led distribution channels. Avnish Chhabria, co-founder of Wellbeing Nutrition, elaborated on this move, stating that partnering with a established pharmaceutical entity like USV was essential to access deeper doctor and pharmacy networks. This access is expected to strengthen customer retention, encourage repeat consumption, and gradually transition the business towards a more prescription-led model.
Following the transaction, Chhabria, who previously held a 50% stake, will retain a 15% ownership until March 2028. The current management team, including co-founder Saurabh Kapoor, will continue to operate the business under the oversight of the newly constituted board. Kotak Mahindra Capital served as the exclusive financial advisor for this landmark deal.
Shareholder Exit and Market Implications
This transaction facilitates the complete exit of early-stage investors Fireside Ventures and Hindustan Unilever (HUL), who collectively held a 40% stake in Wellbeing Nutrition. USV has acquired about 35% of the stake from Chhabria and approximately 44% from other existing shareholders. The deal underscores a pivotal shift in the Indian nutraceutical landscape, where achieving scale is increasingly dependent on medical credibility and robust pharmacy distribution, moving beyond reliance on digital channels alone.
Reports from August had initially indicated USV's interest, with the company being valued between ₹1,500 crore and ₹1,600 crore at the time.
Wellbeing Nutrition's Growth Trajectory and Future Plans
Under the mentorship of HUL and Fireside Ventures, Wellbeing Nutrition has demonstrated remarkable growth, particularly in retail and quick-commerce platforms like Blinkit and Zepto, achieving a 5x growth surge in just the last six months. The company's distribution is notably distinct, with pharmacies contributing over 55% of its revenue and about 15% stemming directly from doctor prescriptions.
With USV's majority ownership, Wellbeing Nutrition aims to scale beyond its premium direct-to-consumer (D2C) model. Immediate future plans include a strategic expansion into the rapidly growing GLP-1 segment, with a focus on developing oral formats as an alternative to injectable therapies. The company also sees significant potential in building complementary, science-backed products focused on metabolic health, leveraging USV's extensive regulatory expertise, clinical capabilities, and established doctor network for greater market credibility.
USV's Strategic Expansion and Market Context
For USV, a company with a six-decade legacy and strong leadership in diabetes and cardiac care with brands like Glycomet GP, Ecosprin, and Roseday, this acquisition represents a strategic move to bolster its presence in the preventive and lifestyle wellness segment. Prashant Tewari, Managing Director of USV, stated that the acquisition aligns perfectly with their strategy to build a future-facing healthcare portfolio that meets the evolving aspirations of Indian consumers.
Concurrently, HUL, in its third-quarter earnings call, emphasized the vast, under-indexed opportunity in India's health and wellness sector. The FMCG giant announced its acquisition of the remaining 49% stake in another nutraceutical player, Oziva, for ₹824 crore, even as it divests its entire holding in Wellbeing Nutrition.
The Indian nutraceuticals market, valued at approximately $8 billion in 2024, is projected to grow at a compound annual growth rate (CAGR) of 11%, according to estimates by global management consulting firm Kearney, highlighting the immense growth potential that strategic moves like this acquisition aim to capture.
