Sporting goods company Agilitas is in advanced discussions to acquire the online sports retailer Sports365. This move aims to strengthen Agilitas’ retail presence and digital customer access. While Sports365 was an early pioneer, its annual revenue has fallen from a peak of Rs 46 crore in FY21 to Rs 2 crore in FY25, presenting a significant turnaround challenge for the company.
What Happened
Agilitas, a sporting goods manufacturing startup, is in advanced talks to acquire Sports365, an e-commerce platform focused on sports equipment. This deal is part of Agilitas' ongoing strategy to build a larger retail footprint in the Indian sports and athleisure market. The company, co-founded by former Puma India executives Abhishek Ganguly and Atul Bajaj, is looking to integrate Sports365 into its existing business, which focuses on manufacturing, licensing, and brand management.
The Turnaround Challenge At Sports365
Sports365, founded in 2012 by Sekhar Garisa and Vishal Gupta, was one of India's earliest online platforms dedicated to sports gear. Over the years, it attracted investments from high-profile figures, including cricketer Yuvraj Singh, tennis star Mahesh Bhupathi, actress Lara Dutta, and squash player Dipika Pallikal. While the business saw growth in its early years, peaking at Rs 46 crore in revenue in FY21, it has faced significant challenges since the pandemic. Financial data indicates that the company’s revenue dropped sharply to approximately Rs 2 crore by FY25. The challenge for Agilitas will be to leverage any remaining brand value or technology assets while addressing this substantial decline in revenue.
Agilitas’ Aggressive Expansion Strategy
This potential acquisition follows a series of expansion moves by Agilitas. The company has secured over $90 million (more than Rs 850 crore) in funding from investors, including cricketer Virat Kohli and actress Anushka Sharma. Agilitas has previously acquired Mochiko Shoes, a manufacturer for major sports brands, and secured licensing rights for the Loto brand in India. Additionally, the company manages Virat Kohli's sports brand, One8. Reports suggest the company is currently looking to raise an additional Rs 450 crore from Nexus Venture Partners to fuel its growth and acquisition strategy.
Why The Deal Matters
For Agilitas, the acquisition is likely less about the current revenue of Sports365 and more about acquiring digital infrastructure, customer data, and a ready-made e-commerce platform. By folding Sports365 into its operations, Agilitas aims to shorten the time needed to build a direct-to-consumer sales channel. The deal is expected to be valued at less than Sports365's peak revenue, reflecting the platform's diminished financial performance compared to its previous highs.
What Investors Should Track
While Agilitas is a private entity, these developments provide insight into the consolidation trend within the Indian sports retail sector. For those tracking the company’s progress, the key monitorables include the successful integration of Sports365 into the Agilitas ecosystem, the ability to reverse the revenue decline at the platform, and the company's progress on its reported fundraising efforts. The ultimate success of the deal will depend on whether Agilitas can turn the e-commerce platform into a profitable channel for its growing portfolio of sports brands.