Pratech Brands, a leading digital retailer and the parent company of HyugaLife, has successfully secured INR 52 crore (approximately $6.3 million) in a seed funding round. The investment was spearheaded by Spring Marketing Capital and Stride Ventures, with notable contributions from Peak XV Partners‘ Surge Ventures, alongside other investors.
According to regulatory filings with the Registrar of Companies, Pratech Brands’ board has approved a special resolution to allocate 21,77,817 Seed Compulsory Convertible Preference Shares (Seed CCPS) at a price of INR 168.15 each, amounting to INR 36.62 crore (approximately $4.4 million). Additionally, the company passed a separate resolution to issue 29,735 partly paid CCPS at INR 168.15 per share and 1,500 non-convertible debentures (NCDs) priced at INR 1,00,000 each to Stride Ventures, raising INR 15.5 crore.
In the funding round, Stride Venture and Spring Marketing Capital took the lead with investments of INR 15.5 crore and INR 12.5 crore, respectively. Following closely, Surge Ventures contributed INR 10 crore to the round.
The remaining amount was invested by Oorumane Mercantile, Patni Wealth Advisors, Eco Power Systems, AS Desaai Consultants, AMD Consultancy Services, and individuals including Nihir Parikh, Dhaval Parikh, Sandhya Shah, Rohan Mehta, Suhagi Parikh, Nimish Shah, Prakash Shah, Nitesh Jha, Simraan Teckchandani, Priya Ujgaonkar, and Karan Jindal.
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According to estimates from the startup intelligence platform TheKredible, Pratech Brands is valued at approximately INR 160 crore or slightly over $19 million. To date, the company has raised approximately $9.3 million.
Pratech Brands is a tech-first hub of brands specializing in home and health products, driven by identifying consumer needs and cultivating consumer brands.
In January, its health and wellness brand HyugaLife secured $1 million in funding from Stride Ventures and Getvantage. Additionally, the brand enjoys support from Indian cricketer K L Rahul and actress Katrina Kaif.
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For context, HyugaLife operates under Hyuga Health & Wellness Private Limited and Hyuga Ecommerce Ventures Private Limited, both of which are subsidiaries of Pratech Brands Private Limited.
Additionally, Pratech Brands also owns Neesan Ventures and a natural healthcare brand for female hormones, Inaari.
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Following the fresh capital infusion, the company’s promoters, including Neehar Modi, Sandhya Shah, Sachin Parikh, Shruti Parikh, and Anvi Shah, now collectively possess more than 52% ownership. Surge Ventures holds an 18.6% stake, while Spring Marketing Capital retains a 9.4% stake in the company.
In FY23, Pratech Brands saw its revenue from operations grow to INR 4.87 crore from INR 1.71 lakh in FY22. However, as per TheKredible, the company’s losses surged to INR 25.39 crore during FY23 compared to INR 99 lakh in FY22.
