PC: Indian Retailer
D2C health and wellness startup, Wellbeing Nutrition has raised Rs 25 crore (around Rs 3 million) in debt funding. Pharmaceutical major ACG-Capsules and angel investors Maheshwari Investors Pvt Ltd, MGB Advisors and Atmos Finance have provided this latest infusion to the drug delivery company. This is after the company passed a special board resolution for issuance of 2,500 optionally convertible debentures (OCDs) of Rs 1,00,000 each, in regulatory filings through RoC.
ACG-Capsules spearheaded the round with an Rs 10 crore contribution. The other three investors will be given Rs 15 crore, also equally, and the balance Rs 15 crore will be divided equally among all three other investors, each giving Rs 5 crore. Therefore, the bulk of funds raised will be primarily used for general business operations such as capital and working capital expenditures, according to the company’s official filings.
Wellbeing Nutrition has been established by Avnish Chhabria, who has made a name for himself in the wellness industry thanks to the whole food, plant-based nutritional supplements that it sells which improve daily health. Under the daily wellness, sleep support, gut health, skincare, headaches, and hair loss solution category, the company offers its products. Growth in this consumer demand for products with clean labels and natural appeals in personal health and nutrition is driving product offerings from these companies. Wellbeing Nutrition has since caught the attention of institutional and strategic investors since its inception. The credible data indicates that the company has raised $13.9 million to date. Besides this, fireside ventures and Hindustan Unilever Limited (HUL) led $10 million Series B round in December 2022 showed its growing credibility in the wellness space.
The company has weathered a fundraising storm, but failed to make a profit. Operating revenue of Rs 70 crore for the year ending March 2024 were recorded by Wellbeing Nutrition. On the loss front, it also recorded Rs 32 crore of loss from operations meant for scaling the operations in the cost intensive and competitive D2C space.
Wellbeing Nutrition, with this new debt round, is hoping to enhance its financial position and make its business run smoothly. Continued consumer demand for health-centric products coupled with the company’s powerful product line, makes it perfectly positioned to capitalize on the available fresh capital and drive revenue and profitability in the coming years.
