GlobalBees, a subsidiary of FirstCry, has strengthened its foothold in the healthy snack industry by acquiring the remaining stake in the D2C brand The Butternut Co. With a fresh investment of INR 8 Cr, GlobalBees has increased its ownership to 100%.
The latest investment allows GlobalBees to acquire the remaining 24% stake previously held by The Butternut Co’s cofounders, Sahil and Ankita Kukreja. As per an official filing, GlobalBees, which already owned 76% of the company, now holds full control.
Financial data from FirstCry’s red herring prospectus (RHP), filed in August, reveals substantial growth for The Butternut Co in FY24. The company’s revenue from operations soared by 57%, reaching INR 11.14 Cr compared to INR 7.09 Cr in FY23. Despite the significant increase in revenue, the company posted a loss of INR 1.61 Cr for FY24, improving from a loss of INR 2.77 Cr in the previous year. Its current net worth stands at INR 5.8 Cr.
The Butternut Co, established in 2016 by Sahil and Ankita Kukreja, specializes in nut-based products like almond, seed, and peanut butters, which it sells directly through its online store. GlobalBees first invested in the brand in 2022, marking the beginning of its partnership with the health-focused snack company.
In addition to The Butternut Co, GlobalBees has actively invested in various D2C brands, including HealthVit, Top Gummy, UrbanGabru, Urban Yog, and Kuber Industries. Recently, GlobalBees increased its stake in another brand, The Clownfish, with an INR 5.88 Cr investment, securing an additional 22.5% ownership in the company.
GlobalBees, founded by Nitin Agarwal and Supam Maheshwari, focuses on acquiring and scaling brands that sell on ecommerce platforms like Amazon India and Flipkart. Its diverse portfolio also includes brands such as The Better Home, andMe, Absorbia, Prolixir, and Rey Naturals.
In the first quarter of FY25, GlobalBees reported a 26% growth in operating revenue, reaching INR 324.5 Cr, up from INR 256.5 Cr in the same quarter last year. Meanwhile, its parent company, FirstCry, reduced its net loss by 31% year-on-year, posting a loss of INR 75.68 Cr. FirstCry also saw a 10% increase in operating revenue, amounting to INR 1,652.07 Cr in Q1 FY25.
Following these developments, FirstCry shares closed 2.9% higher at INR 643.80 on the BSE.
This acquisition marks a significant milestone in GlobalBees’ efforts to expand its presence in the health and wellness space, reinforcing its commitment to nurturing innovative D2C brands.