Healthkart.com Buys Madeinhealth.com

<?xml version="1.0" encoding="UTF-8"?><root available-locales="en_US," default-locale="en_US"><static-content language-id="en_US"><![CDATA[<p>As funding starts to dry up in the e-tailing domain, small companies trying to raise Round A of funding are finding it hard to sustain their businesses. Case in point is madeinhealth.com – a body-building and fitness supplement store – which after struggling for nearly six months to raise $2.5-$3 million, decided to sell itself to larger competitor Healthkart.com in an all cash deal.&nbsp; <br><br>Earlier this month, fashion accessories portal <a href="http://www.businessworld.in/businessworld/businessworld/content/Yebhicom-Buys-Stylishyouin.html">Stylishyou.in got snapped by Yebhi.com</a>.<br><br>The market is anticipating the Healthkart-madeinhealth deal to be in the range of Rs 20 – Rs 30 lakh.<br><br>According to Healthkart.com's founder and Joint Managing Director Prashant Tandon, "this inexpensive deal" will fetch Healthkart a strong data base, online domain, minimal inventory of Rs 1-2 lakh and a Facebook community of fitness enthusiasts.<br><br>"Though they (madeinhealth) were unable to scale their business, they managed to build a good online community of fitness enthusiasts, and we are trying to cash on to that," says Tandon, who struck the deal in March 2012.<br><br>Madeinhealth.com, co-founded by Jatin Modi and Maniraj Juneja in March 2011 is a concept based on US's bodybuilding.com.<br><br>Since March 2011, the company has touched a top line of Rs 1.2 crore. Madeinhealth, which attracts about 1,053 unique visitors per day on its website, get about 20-30 orders a day with an average ticket size varying between Rs 1,500-Rs 3,000. Healthkart.com gets about 25,540 unique visitors a day, according to Hypestat.com.<br><br>"We wanted to expand the company and venture into entire health and nutrition category but since January, the scenario had become bleak in the e-commerce domain," says Modi. "Funding has dried up in last four five months especially for the first round of investments," he added.<br><br>According to sources, the company was contemplating offers from healthkart, yebhi and firstcry before it closed the deal with healthkart.<br><br>The founding team of Madeinhealth – Modi and Juneja -- will not be seen on Healthkart board. However, the remaining 6-7 members have already joined Healthkart business. Healthkart will not wipe off Madeinhealth brand and the website will continue to operate separately though back-end integration will take place.<br><br>When asked why Healthkart chose to keep everything from madeinhealth apart from the founding team, Tandon replied: "We did not require any senior management at this point."<br><br>However, according to Modi, they got a better offer at Yebhi.com and hence the duo decided to join the fashion and lifestyle portal Yebhi as Associate Vice Presidents. With yebhi.com, the founders have received a joining bonus and some stock of yebhi.com.<br><br>Health and fitness category enjoys gross margins of about 35 to 40 per cent. <br><br>Read Also: <a href="http://www.businessworld.in/businessworld/content/Health-Click.html">Health At A Click</a><br><br></p>