[Funding alert] Marico acquires majority stake in health food brand True Elements

Publicly listed consumer goods major Marico Ltd. has acquired a nearly 54 percent equity stake in Pune-headquartered HW Wellness Solutions Private Limited, which owns and operates breakfast and snack brand True Elements. With the acquisition, HW Wellness Solutions has become a subsidiary of Marico.

The transaction was an all-cash deal in a mix of primary capital infusion and secondary buyouts. Marico did not disclose the value of the deal citing confidentiality. 

According to the filing made with the markets regulator, the acquisition will help Marico expand its presence in the healthy foods segment and “..accelerate its digital transformation journey by adding another digital-first brand with a strong and differentiated proposition in its portfolio.”

Marico has been one of the early FMCG brands to add digital-first brands to its portfolio. In July 2021, it acquired a majority stake in Apcos Naturals, which owns and operates Ayurvedic beauty brand Just Herbs. Earlier it had bought a majority stake in men’s grooming brand Beardo in July 2020.

Founded in 2015 by Sreejith Moolayil and Puru Gupta, True Elements is backed by SIDBI Venture Capital and RPSG Capital backed by RP Sanjiv Goenka Group. The omnichannel brand also recently raised Rs 10 crore from Maharashtra State Social Venture Fund in January 2021. 

“True Elements built its first phase of growth behind a portfolio of innovative clean food and building high consumer trust- while we continue to push the bar on those, our next phase will be focused on long term brand building and accelerating our entry into newer households,” said Puru Gupta, CEO and Co-Founder of True Elements in a statement issued by the company.

The company plans on ramping up its offline presence significantly over the next few years. 

According to the filings made by Marico, HW Wellness Solutions had recorded an annual turnover of Rs 54.3 crore for FY 2022 and Rs 36.3 crore in FY 2021. The brand offers a range of over 70 categories including oats, muesli, granola, as well as poha, upma, dosa, and snacks such as roasted seeds and seed mixes. It claims to have a presence across 90 online platforms and 12,000 retail outlets.