Virat Kohli Sells Lifestyle Brand One8, Invests Heavily in Agilitas
Cricketer Virat Kohli is set to sell his lifestyle brand, One8, to the emerging sportswear startup Agilitas. This significant deal also includes Kohli making an additional investment of INR 40 crore into Agilitas and signing an exclusive endorsement agreement.
This strategic move marks a new chapter for Kohli's business ventures in the sports apparel sector. The exclusive deal means he will no longer endorse other sports brands, a significant shift following the end of his long-standing contract with Puma.
Key Deal Details
- Brand Sale: Virat Kohli's lifestyle brand, One8, is being sold to Agilitas.
- Investment: Kohli is injecting an additional INR 40 crore into Agilitas.
- Exclusive Partnership: A new exclusive endorsement deal has been signed with Agilitas.
- Stake: Kohli's stake in Agilitas is reported to be in the "mid single digits".
Agilitas: A Growing Sports Powerhouse
Agilitas is a sportswear and sports-footwear startup founded in 2023 by Abhishek Ganguly, the former managing director of Puma India. The company aims to cover the entire lifecycle of a sports product, from design and manufacturing to retail and distribution.
- B2B Strength: Agilitas has a robust business-to-business foundation through its subsidiary, Mochiko Shoes, which is one of India's largest manufacturers of sports footwear. Mochiko produces shoes for major global brands like Adidas, Puma, and Skechers for the Indian market.
- B2C Expansion: The startup is also building a consumer-facing business. It has secured long-term rights to design, manufacture, and distribute the Italian brand Lotto in India and neighbouring regions.
- Own Labels: Agilitas is investing in its own sportswear and athleisure labels, supported by in-house design and product development capabilities.
Kohli's Strategic Shift
Kohli's decision comes after his seven-year contract with Puma concluded. He reportedly had the option to renew a contract worth INR 300 crore but opted instead to join Agilitas.
- Endorsement Landscape: The exclusive deal with Agilitas means Kohli cannot endorse any other sports brand, a significant change from his previous multi-brand endorsements.
- Vision: Kohli expressed excitement about the new journey for One8 and Agilitas, driven by purpose and ambition.
Future Expectations
Agilitas is focused on research and development, supply chain control, and retail expansion, with ambitions for global reach.
- The deal could potentially involve the launch of new products and the establishment of separate physical retail stores for the One8 brand.
Impact
- This transaction is expected to significantly boost Agilitas by integrating the established One8 brand and Kohli's personal endorsement power. It could lead to accelerated growth for Agilitas and a new phase for the One8 brand. For the Indian stock market, the direct impact is minimal as Agilitas is a startup. However, it highlights trends in celebrity-led brand building and investment in the sports-tech and apparel sector.
- Impact Rating: 2
Difficult Terms Explained
- One8: Virat Kohli's lifestyle brand, focusing on apparel and accessories.
- Agilitas: A sports and sports-footwear startup focusing on design, manufacturing, and retail.
- Exclusive deal: An agreement granting exclusive rights to one party, prohibiting engagement with competitors.
- Endorsement: A public statement of support for a product or service, often by a celebrity.
- Contract manufacturing: Producing goods for another company under their brand name.
- B2B (Business-to-Business): Transactions conducted between two businesses.
- B2C (Business-to-Consumer): Transactions conducted between a business and individual consumers.
- Athleisure: Casual clothing designed for comfort and athletic performance, often worn outside of sports activities.
- Mochiko Shoes: A sports footwear manufacturing company owned by Agilitas, producing for major global brands.