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Time of India
31-05-2025
- Business
- Time of India
Health-focused food brands clock revenue gains on back of quick commerce, wider reach
HighlightsHealth-focused brands in India see rapid growth with rising incomes. Investment in health-centric snacks surged to $65 million in H1 2025. Quick commerce fuels demand for healthier snack options across cities. Rising consumer awareness in India, higher disposable incomes and expansion of quick commerce are driving growth for health-focused food brands such as Farmley, Yoga Bar, The Whole Truth Foods and SuperYou, multiple founders and investors told momentum has helped several players improve financial performance and attract investments, as healthier snack options gain popularity across urban and smaller 'healthy snacking' market is estimated to be worth about $4 billion and is projected to grow at a pace 3.5 times faster than that of traditional packaged snacks, according to estimates by investors. In FY25, Farmley, backed by DSG Consumer Partners, reported a 60 per cent jump in operating revenue from the previous year to Rs 370 crore. It was Rs 170 crore in FY23. The company became Ebitda profitable in FY25, cofounder Abhishek Agarwal told ET. The Whole Truth, backed by Peak XV Partners, is learnt to have ended FY25 with revenue of around Rs 200 crore, up by over 200 per cent from FY24, when it had registered an 80 per cent increase from the previous year, according to regulatory filings sourced from business intelligence platform Tofler. The company is operating at an annualised revenue run rate (ARR) of Rs 250–300 crore, a person aware of the financials said. SuperYou, launched in November 2024 and cofounded by actor Ranveer Singh, is growing at 25–30 per cent month-on-month and is operating at an ARR of around Rs 80 crore. Rising VC interest This year, investor interest in health-focused food brands has increased. The segment received about $65 million in funding in the first half of 2025, compared with $15 million in all of 2024 and about $20 million in 2023, according to data from Tracxn. In May, Farmley raised $40 million in a round led by global consumer-focused investment firm L Catterton, with participation from DSG Consumer Partners. In February, The Whole Truth secured $15 million in a funding round led by Belgian investment fund Sofina. Salad Days, another emerging player, raised $3.5 million in its maiden institutional round, led by V3 Ventures and Client Associates Alternate Fund (CAAF). Agarwal of Farmley said nearly 40 per cent of the company's overall business now comes from quick commerce platforms. 'The segment is really heating up across price ranges and categories. Consumers are actively seeking good options in the healthy segment that deliver on taste and nutrition,' he said. Growth in quick commerce channels and increasing disposable incomes, he said, are prompting more consumers to experiment with better-for-you snacks. 'How we tap into demand from tier-III cities will define how we scale offline distribution,' Agarwal said. According to data from Unicommerce, online orders for healthy staples and snacks in FY25 increased by 60 per cent from the previous year, with tier-III cities showing a 90 per cent jump. Mass brands gain Executives said investors are favouring companies that balance affordability with health-focused positioning. 'When you're Ebitda profitable, targeting a larger TAM and offering a health-plus product at Rs 30–40, you tend to attract significantly more investor interest,' said Suhasini Sampath, cofounder of Yoga Bar, which is operating at an ARR of Rs 300–400 crore. 'By contrast, premium brands with niche audiences and high valuations are facing more scrutiny.' Peak XV's principal Abhishek Mohan said quick commerce has transformed how consumers discover and access food brands. 'Impulse categories like snacks are ideally suited to the format, and healthy brands that deliver on convenience are seeing a strong lift,' he said. Peak XV has backed The Whole Truth and Mumbai-based The Health Factory, which makes high-protein breads. The growing preference for clean-label and additive-free foods is no longer limited to the metros and tier-II cities. Fireside Ventures vice president Ankita Balotia said the key challenges now lie in improving access, affordability and taste. 'Consumers today are far more conscious about what they and their families consume. But price sensitivity and taste parity with mainstream snacks are still important,' she said. Among larger incumbents, Marico-backed True Elements' revenue in FY24 grew by 33 per cent from the previous year to Rs 76 crore, while Tata Consumer's Soulfull business posted a 48 per cent increase to Rs 95 crore.
Economic Times
31-05-2025
- Business
- Economic Times
Health-focused food brands clock revenue gains on back of quick commerce, wider reach
Rising consumer awareness in India, higher disposable incomes and expansion of quick commerce are driving growth for health-focused food brands such as Farmley, Yoga Bar, The Whole Truth Foods and SuperYou, multiple founders and investors told momentum has helped several players improve financial performance and attract investments, as healthier snack options gain popularity across urban and smaller 'healthy snacking' market is estimated to be worth about $4 billion and is projected to grow at a pace 3.5 times faster than that of traditional packaged snacks, according to estimates by FY25, Farmley, backed by DSG Consumer Partners, reported a 60% jump in operating revenue from the previous year to Rs 370 crore. It was Rs 170 crore in FY23. The company became Ebitda profitable in FY25, cofounder Abhishek Agarwal told Whole Truth, backed by Peak XV Partners, is learnt to have ended FY25 with revenue of around Rs 200 crore, up by over 200% from FY24, when it had registered an 80% increase from the previous year, according to regulatory filings sourced from business intelligence platform Tofler. The company is operating at an annualised revenue run rate (ARR) of Rs 250–300 crore, a person aware of the financials said. SuperYou, launched in November 2024 and cofounded by actor Ranveer Singh, is growing at 25–30% month-on-month and is operating at an ARR of around Rs 80 crore. Rising VC interest This year, investor interest in health-focused food brands has increased. The segment received about $65 million in funding in the first half of 2025, compared with $15 million in all of 2024 and about $20 million in 2023, according to data from May, Farmley raised $40 million in a round led by global consumer-focused investment firm L Catterton, with participation from DSG Consumer Partners. In February, The Whole Truth secured $15 million in a funding round led by Belgian investment fund Sofina. Salad Days, another emerging player, raised $3.5 million in its maiden institutional round, led by V3 Ventures and Client Associates Alternate Fund (CAAF). Agarwal of Farmley said nearly 40% of the company's overall business now comes from quick commerce platforms. 'The segment is really heating up across price ranges and categories. Consumers are actively seeking good options in the healthy segment that deliver on taste and nutrition,' he in quick commerce channels and increasing disposable incomes, he said, are prompting more consumers to experiment with better-for-you snacks. 'How we tap into demand from tier-III cities will define how we scale offline distribution,' Agarwal to data from Unicommerce, online orders for healthy staples and snacks in FY25 increased by 60% from the previous year, with tier-III cities showing a 90% jump. Mass brands gain Executives said investors are favouring companies that balance affordability with health-focused positioning. 'When you're Ebitda profitable, targeting a larger TAM and offering a health-plus product at Rs 30–40, you tend to attract significantly more investor interest,' said Suhasini Sampath, cofounder of Yoga Bar, which is operating at an ARR of Rs 300–400 crore. 'By contrast, premium brands with niche audiences and high valuations are facing more scrutiny.'Peak XV's principal Abhishek Mohan said quick commerce has transformed how consumers discover and access food brands. 'Impulse categories like snacks are ideally suited to the format, and healthy brands that deliver on convenience are seeing a strong lift,' he said. Peak XV has backed The Whole Truth and Mumbai-based The Health Factory, which makes high-protein growing preference for clean-label and additive-free foods is no longer limited to the metros and tier-II Ventures vice president Ankita Balotia said the key challenges now lie in improving access, affordability and taste.'Consumers today are far more conscious about what they and their families consume. But price sensitivity and taste parity with mainstream snacks are still important,' she larger incumbents, Marico-backed True Elements' revenue in FY24 grew by 33% from the previous year to Rs 76 crore, while Tata Consumer's Soulfull business posted a 48% increase to Rs 95 crore.
Yahoo
27-05-2025
- Business
- Yahoo
Every Half Coffee secures $3m in pre-series A funding for expansion
Vietnam-based Every Half Coffee Roasters has raised $3m in a pre-series A financing round, with continued backing from Singaporean investment companies Openspace Ventures and DSG Consumer Partners, as reported by Vietnam Investment Review. The Vietnamese speciality coffee brand was established in 2021 by CEO Vo Duy Phu and chief operating officer (COO) Tran Le Minh Truc. Following early success, the brand has opened eight outlets in Ho Chi Minh City, offering beans from Vietnam and from farms worldwide. Tran Le Minh Truc and Vo Duy Phu are instrumental in operations, with the former managing the coffee supply chain, roasting and staff training, while the latter leverages his local experience in retail chain development and large-scale operations. Vo Duy Phu stated: "We believe Vietnamese coffee deserves to be recognised for its true quality and for the care behind it. This new funding will help us open more stores, improve the customer experience and continue building long-term partnerships with farmers.' With 14 stores across Ho Chi Minh City, Every Half Coffee features a modern store design. The company manages the entire coffee-making process, from selection of seeds to in-store service, and collaboratively works with local farmers and cooperatives for a steady supply. It plans to pursue a 150% growth target in 2025, broadening its store network and experimenting with new formats in strategic locations within Ho Chi Minh City. Every Half is also investing in sourcing, particularly in Lam Dong and Buon Ma Thuot, and advancing its fermentation research to improve flavour profiles. In August 2024, Openspace Ventures and DSG Consumer Partners invested an undisclosed amount in the brand's seed round. "Every Half Coffee secures $3m in pre-series A funding for expansion" was originally created and published by Verdict Food Service, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
12-05-2025
- Business
- Yahoo
India's Farmley secures $42m funding in L Catterton-led round
India-based snacks company Farmley has raised $42m in a Series C funding round led by private-equity firm L Catterton. Current investors, including DSG Consumer Partners, also took part in the financing. The investment 'positions Farmley to further scale the briskly-evolving dried fruits and nuts segment of the country's healthy snacking market', according to a joint statement from L Catterton and Farmley. Farmley, established in 2017 by Akash Sharma and Abhishek Agarwal, provides a variety of better-for-you snacking options. Its product line-up includes flavoured foxnuts, also known as lotus seeds, trail mixes, date bites, and roasted nuts, catering to the health-conscious consumer. The co-founders said L Catterton's 'differentiated combination of global and local insights into our industry, as well as proven operating capabilities will be instrumental as we continue revolutionising the healthy snacking landscape in India'. L Catterton partner and head of India Anjana Sasidharan said: 'Farmley has been able to astutely capitalise on long-term consumer trends with its better-for-you positioning and high-quality products. "Its robust dried fruit and nut-sourcing capabilities, prolific new product development engine, and strategic partner status across key sales channels have been vital drivers of the company's growth in its category." The company's revenue has grown by approximately 55% annually over the past two years, reaching around $41m in FY25, according to the statement. Looking ahead, Sharma and Agarwal plan to focus on 'penetrating untapped regional markets, developing cutting-edge product formulations', and 'leveraging advanced food technology to create snacks that truly nourish both the body and the palate'. L Catterton's other investments in the packaged food industry include Little Moons, Ferrara Candy Company and Goodles. "India's Farmley secures $42m funding in L Catterton-led round " was originally created and published by Just Food, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Time of India
12-05-2025
- Business
- Time of India
Healthy snacking brand Farmley bags $40 million
Healthy snacking brand Farmley has raised USD 40 million in a funding round led by global consumer-focused investment firm L Catterton. The round also saw participation from existing investor DSG Consumer Partners. According to cofounder Abhishek Agarwal, the round comprised 70 per cent primary capital and remaining secondary sales by early stage investors like Insitor and Samunnati, along with Esops. The funds will be used for capital expenditure , expanding distribution channels across India, and boosting exports. 'We will also invest in formulations and cutting-edge technologies to develop high-quality products with the right ingredients, health benefits, and taste,' Agarwal told ET. Founded in 2017 by Akash Sharma and Agarwal, the Noida-based firm offers a range of snacks, including makhana-based munchies, date bites, seeds, trail mixes, and roasted nuts. The company sources directly from around 5,000 farmers across multiple regions with five processing units. 'We've been strong so far in the online space, including ecommerce and quick commerce. We've also entered offline distribution, including modern trade and general trade. The response has been very positive, so we plan to scale up that vertical in this financial year,' he said. According to Agarwal, ecommerce now accounts for 35 per cent of the business, while quick commerce contributes 40 per cent . Modern trade brings in 10 per cent , general trade adds 7-8 per cent , and the remaining share comes from institutional channels such as airlines. Farmley saw a 55 per cent revenue growth , reaching Rs 370 crore in FY25, with monthly sales averaging around Rs 40 crore during the year. 'We've been growing almost double on all the quick commerce channels, so we will continue that growth in the quick commerce space. However, the idea is to expand as much as possible in the offline distribution channel. These two will be the primary channels for scaling up over the next year and a half,' Agarwal said. The startup is also eyeing global expansion and has been piloting its products in markets such as the US, Australia, Canada, and Singapore. It last raised USD 6.7 million in a funding round led by BC Jindal Group. The startup has raised around USD 55 million in total to date. Commenting on the investment, L Catterton partner and head of India Anjana Sasidharan said, 'Farmley has been able to astutely capitalise on long-term consumer trends with its better-for-you positioning and high-quality products which resonate with customers. Its robust dried fruit and nut sourcing capabilities, prolific new product development engine, and strategic partner status across key sales channels have been vital drivers of the company's growth in its category.'
