Botanic Healthcare Secures INR 250 Crore Investment for Global Expansion Founded in 2013, Botanic Healthcare specializes in manufacturing botanical extracts, including fruit powder extracts, natural colors, phytochemicals, standardized herbal extracts, and oleoresins.
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Hyderabad-based Botanic Healthcare Pvt. Ltd., a manufacturer of botanical extracts, has raised INR 250 crore in its maiden private equity funding round to fuel its global expansion plans. The investment comes from mid-market private equity firm Stakeboat Capital and Abakkus Asset Manager Pvt. Ltd., valuing the company at approximately INR 1,000 crore (nearly $120 million).
Abakkus, led by investor Sunil Singhania, participated through its Four2Eight Opportunities Fund, a private equity-style investment vehicle. This announcement follows reports of Stakeboat Capital acquiring a 25% stake in Botanic Healthcare alongside another private investment firm.
The fresh funds will be used to consolidate Botanic Healthcare's group entities and drive global growth. "This investment opens doors to new business opportunities, collaborations, and strategies to navigate international markets," founders Madhu Krishnamani and Gaurav Soni said in a joint statement.
Founded in 2013, Botanic Healthcare specializes in manufacturing botanical extracts, including fruit powder extracts, natural colors, phytochemicals, standardized herbal extracts, and oleoresins. Its products cater to industries such as nutraceuticals, food and beverage, and cosmeceuticals. With operations spanning India, the US, Australia, New Zealand, South Korea, and the European Union, the company has steadily carved a niche in global markets.
The company's financial growth has been notable. After stagnating in the INR 50-60 crore revenue range for three years, Botanic Healthcare's revenue nearly doubled to INR 211.1 crore in FY23 from INR 109.9 crore in FY22. Its EBITDA also surged to INR 53.77 crore in FY23, compared to approximately INR 24 crore in the preceding years. For FY24, the company achieved a topline of INR 400 crore, with an EBITDA of around INR 100 crore.
According to Abinandan TS, managing director at Veda Corporate Advisors, the financial advisor for the transaction, the investment positions Botanic Healthcare to cross INR 1,000 crore in annual sales within the next three to four years.
Stakeboat Capital, known for its investments in healthcare, life sciences, and value-added industrials, closed its second fund in September 2022 with INR 1,037 crore. Abakkus, through its Four2Eight Opportunities Fund, focuses on domestic consumption and mid- to late-stage companies, further bolstering Botanic's potential to scale.
