Domino’s Pizza’s parent Noida-based firm Jubilant Foodworks took a 25.02% stake in dietary products and nutritional supplement producer Wellversed Health, the acquirer declared in a regulatory filing with the Bombay Stock Exchange (BSE). The all-cash transaction worth Rs 10 crores would take a spot in two tranches of Rs 6.5 crore and Rs 3.5 crore sequentially.
Under the terms of the contract, Jubilant will have the power to nominate one non-retiring director and observer on the Wellversed board.
“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,” Jubilant Foodworks mentioned in the filing.
According to reports, the Indian Dietary Supplement Market was valued at $3924.44 Million in FY2020 and is foretold to grow at CAGR of 17.28% until FY2026, to reach $10,198.57 Million by FY2026.
Wellversed Health is a Gurugram-based direct-to-consumer (D2C) brand, which trades vegan and keto-friendly products including atta, sweeteners, cookies, and spices, etc.
The startup was established in 2018 by Aanan Khurma, who was first a product manager at 1MG (now taken by Tata), NIT graduate Ripunjay Chachan, and Aditya Seth.
After the pandemic, D2C startups have continued seeing a significant boom as customers shifted online for entertainment, education, and shopping. This drove the exploration of many modern brands. D2C startups — including Sequoia-backed Mamaearth, Elevation Capital-backed SUGAR Cosmetics; and saw their revenue and valuations hike during this period.