Kolkata-headquartered conglomerate ITC Limited has acquired a 39 per cent stake in the Bengaluru-based start-up Sproutlife Foods Private Limited (SFPL), the owner of Yoga Bar.
ITC spent Rs 175 crore to acquire the shareholding.
The deal will help ITC to build up its portfolio and enhance its market presence in the 'Good For You' space. Its portfolio includes Aashirvaad MultiGrain Atta, Aashirvad Nature's SuperFood, Farmlite range of biscuits, Sunfeast Protein Shake and others.
According to the co-founders of Yoga Bar, the association with ITC will help them to take its annual run rate ( ARR) to more than Rs 100 crore. In a statement, Suhasini and Anindita Sampath said, “We are delighted to join hands with ITC in Yoga Bar’s next phase of growth. ITC has a long history of building world-class brands, leveraging its core competencies which encompass a superior understanding of the consumer, strong backward linkages with the agri supply chain and a deep and wide distribution network. We are delighted that ITC and Yoga Bar will work together to build one of the largest brands in the healthy foods space.”
Talking about the deal, ITC said in a stock exchange filing, "The Company has on 4th May 2023 acquired 2,443 Equity Shares of Rs 10 each and 7,215 Compulsorily Convertible Preference Shares of Rs 10 each for an aggregate consideration of Rs 175 crore. With the aforesaid acquisition, the Company’s shareholding in Sproutlife aggregates 39.42% of its share capital on a fully diluted basis."