Healthy snack brand Farmley has raised $40 million in its Series C funding round, led by global consumer investment firm L Catterton and other existing investors such as DSG Consumer Partners.
Large capital rounds grow nearly 60% as company revenues grow to ₹Farmely co-founder Abhishek Agarwal told Fiscal 3.7 billion rupees in Fiscal 255 are expected to further reduce losses and be closer to EBITDA profitability. Mint In the interview.
This round is largely the main one, with some angel investors exiting. Although the company did not disclose details about the valuation, Farmley plans to use earnings to increase its presence in the dried fruit and nut segment of India’s growing healthy snack market.
“Most of the funding will be used to enhance our state-of-the-art infrastructure to meet growing demand,” said Agarwal. “We are also planning to enter new product categories and formulas. “We are focused on building offline distributions in different geographical locations while opening up our export segment.”
Farmley’s new capital infusion also marks a huge leap in the last round in December 2023, when it raised $6.7 million in a previous series of Series B led by BC Jindal Group, with participation from existing investors DSG consumer partners Omnivore, Omnivore and Alkemi Partners. The company’s evaluation in this round is approximately ₹According to market intelligence provider Tracxn, it is 3.5 billion.
To be clear, Farmley does not run its own store, but rather has business in offline agencies such as supermarkets and other franchisee-based partnerships. Over the past two years, the company has invested heavily in its online channels, including fast commerce and e-commerce.
Revenue growth
In fiscal 24, the company grew from operating revenue to ₹2.3 million, compared to ₹Fiscal Year 16.983 billion Fiscal Year 23. It also reduces its losses to ₹From 260 million ₹330 million a year ago.
Agarwal explained that at present, Farmley acquires about 45% of its business from fast commerce, 25-30% from e-commerce, 10% from modern trade (such as supermarkets), 7-8% of its businesses from general trade, and the rest comes from partnerships with different airports and airlines like Akasa and India.
Broadly speaking, the dried fruit and nut segment of the Indian healthy snack market is expected to grow by about 14% per year over the next six years, exceeding $8.5 billion in secular tailwinds by 2031. This includes consumers increasingly switching unhealthy snacks for healthier snacks and meeting their post-workout dietary needs and other small meals.
Brands like Farmley also benefit from consumers’ increasingly opting for delivering consistent quality branded snacks through organized sales channels with better hygiene standards. Other brands in the space include Paper Boat Food, Happilo and Nutri Binge.
Founded in 2017 by Agarwal and Akash Sharma, Farmley offers innocent snack products through its omnichannel distribution. These range from Makhana-based Munchies and indulgent date bites to delicious Trail blends and toasted nuts. In addition to its pan-Indian presence, Farmley also operates in the United States, Australia, Dubai and Singapore.
“We are still understanding the complexity of these markets and the flavors that people like,” Agarwal said, adding that the export business is still in its early stages.
Brand investment
“Overall, we have invested in building the brand over the past year and as we expand across the apex of our business, our losses will also be reduced. Our goal is to achieve at least twice the profitability over the next 2-3 years and at least double the growth. Our fundamentals have been strong because we have tight control over our supply chain and distribution strategies and we will continue to move forward,” he said.
Meanwhile, L Catterton handled approximately $37 billion in equity capital on three multi-product platforms: private equity, credit and real estate. It has invested approximately 300 times in a variety of consumer brands around the world and has built extensive experience in the global packaging food field.
Last year, the investment company announced a joint venture partnership with former Hindu Unilever Ltd. (HUL) CEO Sanjiv Mehta to deepen its operations in India. Joint ventures may gain a mix of minority and majority stakes in a range of businesses that cover businesses that raise Series B funds to more established companies, typically ranging from $25 million to $150 million in transactions.
Its current and past investments include cholula hot sauce, Ferrara Candy Co., Goodles, Kettle Foods, Kodiak, Little Moons, Notco, Notco, Proplated, Plum Organics, Reliance Jio Infocomm, Sugar Cosmetics, Sugar Cosmetics and Drools pet food.
Key Points
- The healthy snack brand has raised $40 million in the latest funding round led by L Catterton, $2023.3 billion
- Farmley’s revenue jumped nearly 60% ₹3.7 billion in fiscal year 255. In the coming years, the company plans to reduce losses and get closer to EBITDA’s profitability.
- The funds will strengthen Farmley’s presence in the Indian dried fruit and nut segment, expand to new product categories, and enhance offline and export distribution channels.
- The company has made substantial investments in its online business, with 45% of its business coming from Quick Commerce, as well as supermarkets and franchise-based partnerships.
- The dry fruit and nut segment is expected to grow 14% per year to reach $8.5 billion by 2031, due to increased consumer demand for nutritious snack options.
