D2C (direct-to-consumer) unicorn Mensa Brands has acquired peanut butter brand MyFitness for an undisclosed sum, the D2C aggregator said on Monday.
The company has now entered the health food category with this deal. This is Mensa’s 22nd reported transaction.
The deal aims to strengthen the brand’s footprint, enabling it to launch new categories, scale D2C, invest in brand-building and expand to global markets. MyFitness' product line-up comprises flavoured peanut butter, crispy peanut butter, and high-protein bars.
Mensa aims to help scale MyFitness in both existing and new markets across channels including D2C, e-commerce platforms, quick commerce platforms and offline channels such as supplement stores, and gyms among other channels.
Founded in 2019 by Mohammad Patel and Rahil Virani, MyFitness raised $1 million in a seed round led by accelerator fund 9Unicorns.
“MyFitness is a fast-growing consumer-loved brand and we will scale the brand to have an omnichannel global presence by leveraging our tech-led playbook. This partnership not only allows us to play in the large and growing healthy food market but does so by leveraging our existing capabilities. We believe we can build MyFitness into a Rs 1,000 crore brand in the next 3-4 years,” Ananth Narayanan, founder and chief executive officer of Mensa Brands said.
As per a press statement, peanut butter alone is a Rs 600 crore market which is witnessing growth at over 30% CAGR (compound annual growth rate), replacing sugary spreads, and jams.
MyFitness currently has over 30 stock-keeping units (SKUs) with an average selling price of Rs 500. Within 3 years of its inception, the company claims to have sold over 7 million jars of peanut butter. The brand is highly rated across platforms and has a high consumer repeat rate.
The deal value remained undisclosed, in May Narayanan with interaction with VCCircle said Mensa buys only profitable brands which have a revenue beginning from Rs 20 crore to up to Rs 150 crore, the company doesn’t pay revenue multiples but chooses to value deals on EBITDA multiples and prefers cash payment over shares. In a previous interview, Narayan said that the company typically pays around $4 million to $5 million for brands.
Currently, MyFitness has over 30 SKUs (stock-keeping units) with an average selling price of Rs 500. Within 3 years of its inception, the company claims to have sold over 7 million jars of peanut butter.
In June, Mensa acquired Noida-based consumer electronics brand Pebble, marking its debut deal in the smart wearables segment.
Mensa Brands, which was founded in 2021, follows a 'house of brands' strategy, in which it acquires and partners with digital-first brands, with the goal of accelerating growth by providing on-the-ground expertise and tech-led interventions in marketing and operations.
In February this year, Mensa led a Series A round of $75 million funding for homegrown beauty brand Renee Cosmetics. This was a rare investment where Mensa Brands co-invested with other venture capital funds. Usually, the Ananth Narayanan-led entity vies for a majority stake in any startup and has added over dozen to date. In November 2021, Mensa became the fastest Indian unicorn (startup with a valuation of $1 billion) as it raised $135 million (around Rs 1,013 crore) as a part of its latest series B funding round led by Falcon Edge Capital’s growth stage platform, Alpha Wave Ventures.
The company is aiming to go public over the next 3 or 4 years.
Mensa has raised more than $300 million (about Rs 2,251 crore) in equity and debt in less than six months since launching the company. Accel Partners, Alpha Wave Global, Norwest Venture Partners, Prosus and Tiger Global Management are among the company's notable investors. Alteria Capital, InnoVen Capital, Piramal Capital, Stride Ventures, and TradeCredit have all provided debt financing to the company.