HealthKart: Temasek-Backed Startup's Net Profit Surges Over 3X to INR 120 Cr in FY25, Revenue Jumps 30%

HealthKart, a prominent nutrition-focused e-commerce startup, has announced impressive financial results for the fiscal year ended March 31, 2025 (FY25). The company achieved a net profit of INR 120 Crore, representing a significant jump of over 227% from INR 36.7 Crore in the previous fiscal year FY24. This strong bottom-line performance was partly boosted by a deferred tax credit of approximately INR 31 Crore.

The startup's operating revenue saw a healthy increase of 30%, reaching INR 1,312.6 Crore in FY25, up from INR 1,021 Crore in FY24. Revenue from the sale of products, the primary contributor, crossed INR 1,000 Crore, growing 30% to INR 1,276.8 Crore. Revenue from services added INR 35.5 Crore.

Founded in 2011 by Sameer Maheshwai and Prashant Tandon, HealthKart targets fitness enthusiasts with supplements and vitamins. It lists over 200 brands and has a multi-channel presence. The company successfully raised $153 million in a funding round co-led by ChrysCapital and Motilal Oswal Alternates, adding to its cumulative funding of about $351 million.

Total expenses for FY25 were INR 1,273.4 Crore, a 23% increase. Key spending areas included promotions and advertising (INR 263.1 Cr, up 40%), purchase of stock-in-trade (INR 124.2 Cr, up 10%), while employee benefit costs saw a slight reduction to INR 115.2 Cr.

Impact

This strong financial performance from HealthKart indicates a healthy growth trajectory for the Indian startup ecosystem, particularly in the e-commerce and health/wellness sectors. It signals increased consumer demand and operational efficiency, potentially boosting investor confidence in similar ventures.

Rating: 6/10

Difficult Terms:

• Soon-to-be-IPO (Soon-to-be-IPO): A startup company that is experiencing rapid growth and is expected to offer its shares to the public on a stock exchange in the near future.
• Net Profit: The profit remaining after all expenses, including operating costs, interest, taxes, and other deductions, have been subtracted from total revenue.
• Operating Revenue: The income generated by a company from its core business activities, such as selling goods or services.
• Deferred Tax Credit: An accounting adjustment that reduces a company's tax liability in the current period, arising from temporary differences between accounting profit and taxable income that are expected to reverse in the future.
• Stock-in-Trade: Goods that a company has purchased or manufactured with the intention of selling them to customers in the normal course of business.
• Employee Benefit Cost: The total cost incurred by an employer for its employees, including salaries, wages, bonuses, insurance, pension contributions, and other statutory or non-statutory benefits.