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ITC Ltd said on Tuesday that it has agreed to purchase direct-to-consumer (D2C) start-up Sproutlife Foods Pvt Ltd in order to expand its foothold in the fast-growing nutrition health foods industry.
According to an exchange filing, ITC would buy out the firm in tranches over a period of 3-4 years. It plans to purchase out 47.5% of Sproutlife Foods in tranches by March 2025.
“The balance stake will be acquired, basis pre-defined valuation criteria, subject to other conditions agreed to in the binding documents,” ITC said.
By February 15, the corporation would have invested Rs 175 crore by subscribing to shares representing a 39.4% ownership in the startup. It would also invest Rs 80 crore by March 31, 2025.
ITC will buy the remaining interest based on the pre-defined value criteria within three months of Sproutlife releasing its financial statements for the fiscal year ending March 2026.
