Botanic Healthcare raises maiden PE funding from Stakeboat, Abakkus
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Botanic Healthcare raises maiden PE funding from Stakeboat, Abakkus

By Sreeja Biswas

  • 03 Jan 2025
Botanic Healthcare raises maiden PE funding from Stakeboat, Abakkus
Credit: 123RF.com

Hyderabad-based botanical extracts manufacturer Botanic Healthcare Pvt. Ltd has raised its maiden private equity funding for global expansion. 
The company raised Rs 250 crore from mid-market PE firm Stakeboat Capital and Abakkus Asset Manager Pvt. Ltd, it said in a press note. The deal valued the company around Rs 1,000 crore, or close to $120 million. 

Abakkus, a Mumbai-based asset management firm founded and led by Sunil Singhania, invested via its Four2Eight Opportunities Fund, a PE-style investment vehicle. 

The announcement comes just days after VCCircle exclusively reported that Stakeboat Capital had signed an agreement to acquire a 25% stake in Botanic Healthcare along with another Mumbai-based private investment firm.  

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Botanic also said that it will use the funds to consolidate its group entities and grow its business globally.  

The investment can help the company open doors to new business opportunities, collaborations and strategies to navigate new markets, Botanic founders Madhu Krishnamani and Gaurav Soni said in a statement. 

Founded in 2013, Botanic Healthcare manufactures fruit powders extract, natural colours, phytochemicals extracts, standardized herbal extracts, natural spice extracts, and oleoresin extract. It caters to the requirement of nutraceuticals, food and beverage, and cosmeceutical industries. Apart from India, the company has a presence in Australia, the US, New Zealand, South Korea and the European Union.

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The company’s revenue had shot up in the first year under the pandemic, after being static in the Rs 50-60 crore range for at least three years. It fell again marginally in FY22, only to surge nearly two times to Rs 211.1 crore in the year ended March 31, 2023, from Rs 109.9 crore in the previous fiscal year. It posted EBITDA of Rs 53.77 crore for FY23, up from about Rs 24 crore in the previous two years, according to VCCEdge, the data research platform of VCCircle.

For the year ended March 2024, the company posted a topline of about Rs 400 crore, with an EBITDA of approximately Rs 100 crore, VCCircle has learnt.

Veda Corporate Advisors was the exclusive financial advisor to the company and its promoters. 

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Abinandan TS, managing director at Veda, said the investment will help Botanic to cross Rs 1,000 crore of annual sales in the next three-four years.

Stakeboat Capital invests in sectors like healthcare, life sciences, value-added industrials and manufacturing, B2B technology, and B2B services. It marked the final close of its second fund in September last year after mopping up Rs 1,037 crore, a little more than its target of Rs 1,000 crore. Stakeboat’s debut fund, which closed in February 2019, had a corpus of $32 million. 

As for Abakkus, the Four2Eight Opportunities Fund is a PE fund focused on domestic consumption and invests across sectors in mid- to late-stage companies. The asset manager manages about Rs 36,700 crore in listed Indian companies and raised its first Rs 2,400 crore PE fund to provide growth capital to unlisted companies. 

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