Virat Kohli has made up his mind to sell One8, his sports brand, to the Bengaluru-based sportswear startup Agilitas and, after that, invest Rs 40 crore of his own money as a minority shareholder in the same company. It is not only an endorsement deal, but it is also a strategic ownership move.
As per the agreement, Virat Kohli will hand over the ownership of One8 to Agilitas and at the same time, he will infuse Rs 40 crore of fresh equity in the startup. The purpose of this organization is to make Kohli one of the minority shareholders with his share estimated to be in the "mid single digits" range, as per the statement from the co-founder and CEO of Agilitas, Abhishek Ganguly.
After Mochiko Shoes, a brand that already manufactures footwear for global brands like Adidas, Puma, New Balance, Skechers, Reebok, Asics, Crocs, Decathlon, Clarks, and US Polo - One8 is going to be Agilitas's second big buy. Agilitas, thus, immediately becomes the potent couple: a manufacturing backbone plus a celebrity-led brand with a proven recall.
The real twist is in what Kohli is sacrificing. One8, which was a part of the Puma portfolio, grew along with Kohli's association with the German sportswear giant. The original Rs 110-crore Puma deal of Kohli, signed around 2017 for eight years, was reportedly going to be renewed at a staggering Rs 300 crore. Instead of going for the sure thing, Kohli decided to back Agilitas, a relatively small but very promising Indian startup, and left the Puma deal.
Kohli summed the point up himself in a social media post: "I could have either been a part of just One8 or been a part of Agilitas." By entering the company through equity rather than a mere seller, he is therefore making a wager that sustainable value creation as a partner will surpass immediate endorsement pay.
As agreed, Kohli collaborating with Agilitas will be an exclusive one, he cannot promote any other sports brand. This is a significant commitment in a market where most top athletes are brand ambassadors for several companies simultaneously.
Ganguly, who was the MD at Puma India when Kohli was brought by him, is now supporting him in a completely different role: not just as a face on billboards, but as a partner who has skin in the game.
"Virat is not thinking of ways to get back the Rs 300 crore that he has let go of. He is in this for the long haul and he sees great potential by being a stakeholder in Agilitas," said Ganguly.
Kohli is upgrading himself from being just a brand ambassador to a brand owner in a potential sportswear powerhouse which is more than just selling a brand for him.
