Virat Kohli invests ₹40cr in sportswear brand Agilitas
What's the story
Cricketing legend Virat Kohli has made a major investment of ₹40 crore in Agilitas, a Bengaluru-based sports goods manufacturing company, according to Moneycontrol. The development comes as part of his growing business portfolio. The cricketer has invested in more than 10 modern start-ups, including Digit Insurance, MPL, and Wrogn. The investment is the first tranche of a larger round, and Kohli plans to invest more personally and increase his involvement with Agilitas over time.
Business ties
Agilitas and Kohli's connection
Agilitas was founded by Abhishek Ganguly, the former head of Puma India. As the MD of Puma India, Ganguly had signed Kohli as a brand ambassador in a ₹110 crore deal that started around 2017 and was set to continue till 2025. However, earlier this year, Kohli chose to walk out of the deal and join Agilitas instead.
New responsibilities
Kohli to play an active role in the company
At Agilitas, Kohli's role will go beyond that of a brand ambassador. He will invest money in return for ownership and play an active part in shaping the company. Agilitas aims to create a comprehensive chain of all things sports, from manufacturing to retail. If it can't build something in-house, it plans to acquire companies with expertise in that area.
Strategic moves
Agilitas has already made 2 acquisitions
In 2023, Agilitas acquired Mochiko Shoes, a company that manufactures shoes for brands like Adidas, New Balance (NB), and Puma. The firm also acquired the licensing rights for Lotto, allowing it to sell its shoes in India and other regions. Kohli's One8 brand will be among at least three other brands to be launched by Agilitas as part of its expansion plans.
Investment specifics
Details of the investment
Kohli has been allotted some 3.6 lakh Class 2 Compulsorily Convertible Preference Shares (Class 2 CCPS). These preference shares will be converted into equity shares at a later date, unlike optional convertible shares, where conversion is at the holder's discretion. This investment is expected to drive up sales, increase the valuation of Agilitas, and ultimately raise the value of Kohli's investment.