Yu Foodlabs, a consumer foods firm, has secured INR 20 Cr ($2.47 Mn) in its Series A fundraising round, which comprised a mix of stock and debt. Ashish Kacholia, a well-known investor, led the round.
Yu, an instant food brand owned by Ikayu Foodlabs Pvt Ltd, has secured 20 crore in series A investment from independent investor Ashish Kacholia through a mix of stock and venture loan. Existing investors, including Asian Paints promoter group Manish Choksi and Varun Vakil, also participated in the round.
With the capital, the firm plans to increase its capacity and extend its existing offline-online distribution in India, while also expanding its worldwide reach in areas like as Africa, the Middle East, and the United States.
The new round of investment also included participation from the DPIITs Start Up India Seed Fund initiative, which approved Yu under its 945 crore program that finances tech-enabled start-ups, according to the company.
Bharat Bhalla and Varun Kapur founded the firm, which includes 15 items in the areas of noodles, pastas, oats, and halwa. It also collaborates with SpiceJet and Akasa Air.
According to the firm, it is enjoying substantial client traction, with over 200% increase quarter on quarter.
Bharat added, “It has been heartwarming and inspiring to have a real vote of confidence from a diversified and very notable collection of investors within one year of our business’s start. Their expertise will enable us to boost our annual production capacity to more than eight million meal bowls while extending our offline / online distribution in India. Over the next 12 months, we will aggressively grow our position in global regions such as the United States, Africa, and the Middle East.”
Kapur said, “Furthermore, it gives us the capacity and resources to enter new channels such as airlines, trains, hospitals, colleges, and defense services, where our 100% natural meal bowls are actually disrupting the category.”
The firm presently operates from a 24,000-square-foot building in Gurugram and employs around 100 people. It has also lately expanded into the non-vegetarian market.
It now intends to launch ten additional goods over the next 12 months to supplement its present product line. According to the analytics website Statista, sales from ready-to-eat meals will reach $56.93 billion in 2022.
The country’s market is predicted to increase by 9.59% per year (CAGR 2022-2027). In comparison, China generates the largest revenue, accounting for $122.40 billion in 2022.