Agilitas Secures Rs 450 Crore Funding from Nexus Venture Partners for Sports Goods Expansion

Sporting goods company Agilitas is close to finalizing a significant funding round, aiming to raise Rs 450 crore (around $50 million) from its key existing investor, Nexus Venture Partners. Sources indicate the funds will be disbursed in two tranches of $25 million each.

The capital infusion is earmarked for expanding Agilitas's product offerings, with a focus on new products under the Lotto brand for various age groups. Additionally, the company plans to invest in research and development to drive innovation and accelerate its offline expansion strategy.

This new funding round values Agilitas at approximately $400 million (about Rs 3,500 crore). This comes a couple of years after Nexus Venture Partners initially invested Rs 100 crore, building on their earlier seed-stage investment.

Agilitas, led by former Puma India MD Abhishek Ganguly, along with co-founders Atul Bajaj and Amit Prabhu, aims to build an integrated sports ecosystem from manufacturing to retail. The company has a history of strategic acquisitions, including Mochiko Shoes in 2023, which manufactures footwear for numerous global brands. Agilitas also holds licensing rights for Lotto, enabling it to sell Lotto-branded shoes in India and other regions. Beyond Lotto, Agilitas plans to launch at least three more brands, including cricketer Virat Kohli's One8.

In the past six months, Agilitas also raised Rs 40 crore from Virat Kohli and an undisclosed amount from Spring Marketing Capital. To date, excluding the current round, Agilitas has secured over Rs 650 crore ($75 million) from various investors.

Impact

This substantial funding will empower Agilitas to significantly scale its operations, diversify its product range, and strengthen its market presence in the competitive sports goods sector. The investment signals strong investor confidence in the company's business model and the growth potential of the Indian sports retail market. For the Indian market, this indicates continued interest and capital inflow into consumer-focused businesses with strong growth narratives.

Rating: 7/10

Difficult Terms:

Tranches: Portions or installments of a larger sum of money that are paid at different times.

Product portfolio: The complete range of products or services offered by a company.

Research and Development (R&D): Activities undertaken by companies to innovate and introduce new products and services, and to improve existing ones.

Offline push: Efforts to expand a business's physical presence, such as opening new stores or increasing distribution through traditional retail channels.

Valuation: The estimated worth of a company, often used during funding rounds or acquisitions.

Seed round: An early stage of financing for startups, typically provided by angel investors or venture capital firms.

Licensing rights: Legal permission granted by one party to another to use a specific brand name, trademark, or intellectual property for commercial purposes.

Acquired: Gained possession of something, in this context, meaning purchased or taken over by another company.