An e-mail sent to Flipkart on the development did not elicit any response.
“The deal with Flipkart is over and we got back all the intellectual property rights of the Sastasundar brand from it. Now, we will launch our app. In 2021, we had sold a 75 per cent stake in Sastasundar Marketplace Ltd for around Rs 750 crore to Flipkart,” Sastasundar Group chairman B L Mittal told PTI.
This reclaim transaction did not attract any material investment, he said.
Holding company Sastasundar Ventures has re-acquired the brand’s IPRs and non-compete rights from Flipkart Health+ through its newly-formed subsidiary, Sastasundar Healthtech Ltd, he said. “We are working to merge this entity with the holding company,” Mittal said. “I think Flipkart’s decision followed its global plan to exit the health business. The Flipkart Health+ company stays with them and it is up to them what they will do,” Mittal said.
In 2021, Flipkart had acquired a majority stake in Sastasundar Marketplace Ltd (SML) at an enterprise valuation of Rs 1,150 crore to foray into the online pharma and healthcare sector.
SML was a step-down subsidiary of Sastasundar Ventures that held the brand-related IPRs, and after the 2021 acquisition, it was rebranded as Flipkart Health+.
Sastasundar Ventures retained a 25 per cent stake in that entity.
“We acquired all IPRs and sold compulsorily convertible preference shares (CCPS) worth nearly Rs 100 crore to Flipkart to regain full rights and eliminate non-compete restrictions. The transaction was completed in the last quarter, resulting in a one-time loss of around Rs 188 crore due to the write-off of the retained 25 per cent stake,” Mittal said.
But this is just a “technical accounting loss and not material loss to the company”, he added.
