Fast-moving consumer goods giant Marico is no stranger to acquiring D2C brands. Its portfolio includes the likes of men’s grooming brand Beardo, ayurvedic skincare brand Just Herbs, and snack and cereal brand True Elements. Most recently, it acquired plant-based nutrition brand Plix in July 2023, with the company stating earlier in the year that it was scouting for D2C brands in the personal care and food categories.

Even as Marico doubles down on its D2C acquisition strategy, however, Beardo—which it acquired all the way back in June 2020—is proving to be a challenging beast to tame. According to a lawsuit filed in the Bombay High Court, which The CapTable has reviewed, Beardo’s parent entity Zed Lifestyle has sued its biggest distributor RHV Enterprise and its directors over unpaid dues, alleging that RHV’s directors have siphoned off funds owed to Beardo.

In its suit, Beardo alleges that the non-payment of dues by RHV has adversely impacted its business. In September last year, according to the lawsuit, the total outstanding owed by RHV stood at Rs 26 crore. This is about 3X of Beardo’s monthly sales, say sources aware of the matter.