ITC to acquire 100% shares of startup 'Sproutlife Foods' over 3-4 years

Sproutlife Foods Private Limited is a startup engaged in the manufacturing and sale of food products under the trademark 'Yoga Bar'

FMCG major ITC on Tuesday announced that it will acquire 100 per cent shares of the startup Sproutlife Foods Private Limited (SFPL). The startup will be acquired by ITC over a time period of about three to four years from the execution of the transaction documents, the company said in an exchange filing.

According to the statement, Sproutlife produces and markets food items under the trade name "Yoga Bar." With a strong emphasis on online sales (D2C, e-commerce platforms, etc.) and a rising presence in physical stores, Yoga Bar is positioned as a digital-first brand. Yoga Bar's FY22 turnover was Rs 68 crore, according to the statement.

ITC will first purchase 30.4 per cent stake for Rs 175 crore, the statement said.

By 31 March 2025, an additional investment of Rs 80 crore will be made, giving the company a total stake of 47.5 per cent, ITC said. The remaining stock will then be bought based on pre-determined value criteria, subject to additional conditions outlined in the legally binding contracts.

The company added in the statement that ITC is fortifying its presence in the fast-growing, nutrition-led healthy foods space, with a proposed strategic investment in SFPL, a Direct-to-Consumer (D2C) StartUp engaged in the manufacture and sale of innovative products catering to health-conscious consumers under the clean label, new-age digital-first brand 'Yoga Bar'.