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Pratech Brands Secures $6.3 Million in Seed Funding Round for HyugaLife Expansion

Pratech Brands, the parent company of digital-first retailer HyugaLife, has successfully raised Rs 52 crore (approximately $6.3 million) in a seed funding round led by Spring Marketing Capital and Stride Ventures. The investment also saw contributions from Peak XV Partners' Surge Ventures and other notable backers.

According to regulatory filings with the Registrar of Companies, Pratech Brands authorized the issuance of 21,77,817 Seed Compulsory Convertible Preference Shares (Seed CCPS) at a price of Rs 168.15 each, totaling Rs 36.62 crore ($4.4 million). Additionally, the company issued 29,735 partly paid CCPS and 1,500 non-convertible debentures to Stride Ventures, raising Rs 15.5 crore.

Stride Ventures and Spring Marketing Capital led the funding round with investments of Rs 15.5 crore and Rs 12.5 crore, respectively, followed by Surge Ventures with an infusion of Rs 10 crore. Other investors, including Oorumane Mercantile, Patni Wealth Advisors, and several individuals, contributed to the remaining funds.

Pratech Brands has been valued at approximately Rs 160 crore (over $19 million), with total funding reaching $9.3 million to date.


Pratech Brands specializes in developing consumer brands centered around home and health products, leveraging technology to identify and address consumer needs. One of its flagship brands, HyugaLife, focuses on health and wellness products and recently secured a $1 million investment from Stride Ventures and Getvantage in January. Notably, HyugaLife counts Indian cricketer K L Rahul and actress Katrina Kaif among its backers.


HyugaLife operates under Hyuga Health & Wellness Private Limited and Hyuga Ecommerce Ventures Private Limited, both subsidiaries of Pratech Brands. The company also owns Neesan Ventures and Inaari, a natural healthcare brand catering to female hormones.


Following the latest funding round, the promoters of Pratech Brands collectively own over 52% of the company. Surge Ventures holds an 18.6% stake, while Spring Marketing Capital owns 9.4%. Detailed shareholding information can be found [here](insert link).


Despite its impressive fundraising efforts, Pratech Brands reported a significant increase in losses, with FY23 losses reaching Rs 25.39 crore compared to Rs 99 lakh in FY22. However, its revenue from operations surged from Rs 1.71 lakh in FY22 to Rs 4.87 crore in FY23, indicating substantial growth potential for the company.


In summary, Pratech Brands' successful seed funding round underscores investor confidence in its digital-first retail model and its commitment to addressing consumer needs in the home and health sectors.


 

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