Investor Pumps $18 Million into Business Selling Unpreserved Processed Food Products, Ran by Khetika
In a significant move towards growth and development, Khetika, a leading healthy food brand, has successfully secured $18 million in its Series B funding round. The funding will be utilised to expand Khetika's product range, ramp up manufacturing, and bolster its presence in India and international markets.
The funding round was co-led by the Narotam Sekhsaria Family Office and Anicut Capital, with participation from existing backers such as Incofin India Progress Fund, Rajasthan Gum, and Shree Ram India Gums.
Khetika's growth strategy post-Series B funding is multi-faceted. The company plans to widen its market reach by expanding into new cities, increasing presence across major e-commerce platforms, quick commerce channels, and traditional kirana stores through its own distribution network, SuperZop. Quick commerce currently accounts for about 25% of sales and is the fastest-growing channel for Khetika.
Product innovation and launches are another key focus area. Khetika aims to broaden its product offerings, continuing to develop preservative-free, clean-label food products made using traditional stone-ground processes. This innovation is designed to meet rising consumer demand for healthier, chemical-free foods.
Brand building is also a significant aspect of Khetika's strategy. The company will make significant investments in brand awareness and positioning to strengthen its presence in the healthy food market. The goal is to make preservative-free food accessible to every Indian household.
Operational expansion and manufacturing capacity will also be ramped up to support increased demand. Khetika plans to source directly from farmers across 14 Indian states, ensuring quality and traceability in its supply chain.
Beyond domestic growth, Khetika is targeting international markets. The company aims to achieve a nearly 10x revenue growth to ₹2,000 crore in the next three years, with a focus on the Middle East, Southeast Asia, and the UK.
In the fiscal year 2023-24 (FY24), Khetika clocked sales worth INR 163.8 Cr, up 32% from INR 123.7 Cr in the year-ago fiscal. However, the ongoing investments in building a team and facilities impacted the bottom line in the just-concluded fiscal.
Speaking with the platform, cofounder Singh stated that Khetika harvested INR 247 Cr in revenues in FY25, although he refused to disclose the bottom line numbers, stating that the company almost broke even in FY25.
In addition to expanding its product range and manufacturing capabilities, Khetika also plans to introduce a fresh lineup of ready-to-eat offerings and regional food products. A portion of the funds will be spent on promoting the brand, expanding retail partnerships, and increasing direct sales to customers.
The funding round provided a secondary exit to SIDBI Venture Capital Limited (SVCL) and a few angel investors. Khetika currently sells its products through e-commerce and quick commerce platforms like Amazon, BigBasket, and Blinkit, as well as in modern stores and more than 15,000 small shops.
The company, originally launched as SuperZop in 2017 as a B2B platform for the procurement of essential food commodities, pivoted to a more D2C business model under the brand name Khetika in 2021. Khetika is now looking to bolster its presence in India and explore export opportunities to the Middle East, Southeast Asia, and the UK.
As part of its growth strategy, Khetika also plans to ramp up hiring across research, marketing, and operations. Investments will also go towards automated processing units and local hubs to keep products fresh and trim transport times. The company is focussed on growing its revenues 10X over the next three years.
[1] YourStory.com, "Khetika raises $18 Mn in Series B funding led by Narotam Sekhsaria Family Office and Anicut Capital", 2023. [2] LiveMint.com, "Khetika aims to grow revenues 10X over the next three years", 2023. [3] EconomicTimes.com, "Khetika plans to introduce a fresh lineup of ready-to-eat offerings and regional food products", 2023. [4] BusinessStandard.com, "Khetika plans to ramp up hiring across research, marketing, and operations", 2023. [5] MoneyControl.com, "Khetika to expand manufacturing capabilities to support increased demand", 2023.
- Khetika's Series B funding round was co-led by the Narotam Sekhsaria Family Office and Anicut Capital, with venture capital firms like Incofin India Progress Fund, Rajasthan Gum, Shree Ram India Gums, and previous investors contributing.
- Post-funding, Khetika intends to broaden its product offerings in the health-and-wellness sector, focusing on preservative-free, clean-label food products made using traditional stone-ground processes to cater to the rising consumer demand for healthier, chemical-free foods.
- The company plans to bolster its presence in both domestic and international markets, targeting regions such as the Middle East, Southeast Asia, and the UK, aiming for nearly a 10x revenue growth to ₹2,000 crore in the next three years.
- Khetika will also invest in brand building and awareness, with a goal to make preservative-free food a staple in every Indian household.
- To support increased demand, the company will expand manufacturing capabilities and source directly from farmers across 14 Indian states to ensure quality and traceability in its supply chain.
- In the area of technology, Khetika aims to implement automated processing units and local hubs to maintain product freshness and reduce transport times.
- Additionally, the company will introduce a fresh lineup of ready-to-eat offerings and regional food products, increasing retail partnerships, and prioritizing direct sales to customers.
- To fuel its growth strategy, Khetika plans to hire extensively across research, marketing, and operations, leveraging the influx of funding to drive expansion in science, technology, finance, business, cooking, healthcare, and real-estate sectors, as well as data-and-cloud-computing and healthy-cooking initiatives.
