There is a major transformation in the Indian pharmaceutical scene as old prescription-focused firms are shifting to the new direct-to-consumer (D2C) wellness opportunity. Nutritionalab Private Limited has sold a majority share of its 79% stake to USV, a pharmaceutical giant, in a landmark deal that involves the parent company of the clean-label nutraceutical manufacturer Wellbeing Nutrition. This cash deal is estimated to be worth ₹1,583 crore, the highest deal up to date in the Indian health and wellness startup ecosystem.
Acquisition and exit of a major investor
The purchase represents the USV strategic expansion of its established leadership in such therapeutic domains as oral anti-diabetics and cardiovascular care. The USV, which has a history of leading brands in the market such as Glycomet GP and Ecosprin, is making use of this buyout to create a one-stop healthcare giant that cuts across the entire spectrum of prescription medicine to preventive lifestyle wellness.
The transaction is built as an important secondary transaction with additional founder participation. The 35% stake of the founder, Avnish Chhabria, and the other 44% of early-stage institutional investors are being sold to USV. This sale will enable the total exit of Hindustan Unilever (HUL) and Fireside Ventures, who together had a share of approximately 40% of the company.
HUL, which had earlier invested approximately ₹70 crore in Wellbeing Nutrition in 2022, has sold the whole 19.8% to USV at ₹307 crore. This departure has paid off tremendously for the FMCG giant in terms of a four times higher payoff on the initial investment. Although the ownership will change, the founder Avnish Chhabria will receive a significant stake and will remain in charge, which will ensure the brand retains its main goal and innovative spirit and has access to the global scope of USV and pharmaceutical experience.
Strategic rationale and financial performance
Wellbeing Nutrition has shown a high growth trend since its establishment in 2019. In the current FY25, the company generated a turnover of approximately ₹170 crore, which was an enormous 120% growth in two years. Although the company is still going through its loss-making periods, with the net loss standing at approximately ₹30 crore in FY25, the high valuation indicates that investors are convinced of its ability to scale and capture the market.
The brand has been successful due to its various and innovative product range comprising plant-based vitamins, minerals, collagen, and its trademarked Melts oral thin strips. The company uses a successful omnichannel model, involving the online and quick-commerce partners that make approximately 70% of the sales, and the stores are also present in more than 3,700 retail locations. In the future, Wellbeing Nutrition will achieve even larger sizes, and internal goals will focus on reaching ₹450 crore in yearly revenues as of FY27.
In the case of USV, this is a strategic acquisition to update its consumer healthcare portfolio. Although the company already has a presence within the vitamin and calcium segment under the prescription segment, such as D-Rise and Triplecal, these are mainly doctor-prescribed products. The acquisition of Integrating Wellbeing Nutrition offers USV an instant and advanced foothold in the D2C market, which has a valuation of more than ₹21,000 crore.
With the ability of USV to offer its clinical rigor and depth of distribution, and Wellbeing Nutrition to build a brand and act as a digital-first force, the entity stands in a strong position to dominate the preventive healthcare industry. This acquisition is part of a larger industry trend in which traditional pharma companies are buying agile D2C brands to remain relevant to a younger and more health-conscious generation that values transparent and sustainable nutrition.
Conclusion
The sale of 79% of Wellbeing Nutrition to USV at ₹1,583 crore in valuation is an indicator of the maturity of the health-tech and D2C industries in India. It points out an effective lifecycle of a startup- starting with initial support by strategic investors such as HUL and an enormous exit powered by a pharmaceutical giant.
With Wellbeing Nutrition in the next stage of its development within the framework of USV, priorities may be shifted on the way to attaining EBITDA profitability with global expansion within the US, UK, and the UAE. This deal not only confirms the huge potential of clean-label nutrition but also highlights the changing face of the Indian healthcare market, where the distinction between medicine and wellness is slowly becoming indistinct.
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