The Food Edition 🥑
Plant-Based Foods, Food Packaging, Ready-To-Make Foods, Farm-to-Fork
👋 Hey!
GlobalBees D2C Pulse is back to brighten up your day with exciting content around the direct-to-consumer (D2C) ecosystem in India - start-ups, funding, acquisitions, partnerships, and more. If you missed our previous editions, check them out here!
Before we dive into some important D2C highlights from the last week, here’s one important update from the niche industries which until now saw only new-age players - ITC has entered the still very nascent plant-based meat market in India with patties & nuggets! The plant-based meat industry has evolved over the last few years but the entry of a major player like ITC with large distribution networks will surely leapfrog its growth and acceptance.
What’s in the news?
💸Men with wings
Grooming and personal care startup, Bombay Shaving Company bagged INR 160 cr. in a funding round led by Malabar Investments. BSC initially focused on making men look Dapper, has also opened a separate portal for women’s hair removal products that now contributes to 25% of its total revenue.
With the influx of fresh funds, BSC aims to grow its offline and international presence, and enter into new categories that will be aided by the distribution network it enjoys as an investee company of Colgate Palmolive. BSC is in talks to raise an additional INR 300 cr. as it focuses on building an IPO-able company.
Sector valuation: USD 643 mn in 2018; projected to grow to USD 1.2 bn by 2024.
Competitors: Beardo, Ustraa, The Man Company, Nykaa Man
🤑Instant food’s long term success
Demand for convenience foods has shot up on account of the pandemic, requiring brands to ramp up capacity. Bengaluru-based food tech co. ID Fresh popular for its instant batters, curd etc. opened the world’s largest idli-dosa batter factory in Karnataka last year with the capacity to make over 1L kg batter and 3L parotas per day! In a move to expand further, it has now raised INR 507 cr. from NewQuest Capital Partner, Premji Invest & others.
The brand has entered categories like RTM wheat chapati, filter coffee liquid, bread & more. With the new funds, ID will introduce more innovative products that redefine the packaged fresh food space in the country.
Sector valuation: Projected to grow to a USD 70 Bn market in the next 10 yrs.
Competitors: Slurrp Farm, Soulfull, Tulua, Yu Food Labs
🥑Making a better choice
Living Food, a marketplace supplying a vast selection of fresh, locally sourced, and clean foods pan India, raised INR 55.8 cr. in a funding round led by Amasia. Products listed on Living Food include seasonal fruits, leafy greens, fresh bread, artisanal chocolates, spreads, and sauces, etc. After Licious, many start-ups focusing on farm-to-table models are mushrooming. Know more about this industry, in our trends section.
Market size & Competitors: USD 40 bn; Fresh To Home, Zappfresh, BigBasket, and Swiggy.
Speaking of sustainable sourcing and clean eating, have you seen Netflix’s docuseries called ‘Rotten’ on corruption in global food supply chain! A must watch!
🍿Tech bites
U.S. and India-based startup Avataar, that helps consumers visualize products in the real-life size and feel in their home, picked up USD 45 mn
B2B marketplace focused BNPL Rupifi raised USD 25 mn. Marketplaces like Walmart, Flipkart, and Jumbotail use their services.
Indian B2B marketplace Indiamart invested INR 13.35 cr. in warehouse management firm EasyEcom to acquire a 26.01% stake.
Brands that caught our eye!
🎋Bamboozle the plastic
Lately, an increasing number of food delivery services have started replacing the nasty plastic wrapping with eco-friendly packaging. Courtesy for some part of this change goes to Bambrew. Bambrew curates a host of eco-friendly packaging options made from bamboo, sugarcane, and seaweed and supplies to clientele like Zomato, Fatty Bao, Myntra, Big Basket etc. Its products are lightweight, durable, and also fully biodegradable.
🧴Skinimalism to skintelligence
CosIQ, an intelligent and minimal skincare brand aims to demystify skincare for the average Indian consumer and bring affordable scientific-oriented products to them. It is taking transparency in skincare to a next level by providing to the consumer, complete information about a product on the product display page - information such as product sensories, a guide about skin suitability, an annotated ingredient list. This brand recently raised funds from India’s Shark Tank, claiming to push the skincare space in a new direction.
Trend of the week: Farm to Fork 🍽️
Contaminated food & beverages are the biggest cause of preventable infections amongst Indians. In the last half a decade, the country has seen businesses focusing on ‘Eat Right’ gain prominence.
They provide fresh, locally sourced, good quality veggies, meat, milk and more to the consumers by partnering with local farmers, bakers, brewers, and other food artisans. The combination of environmentally sustainable practices with quick commerce to provide organic and fresh foods is increasingly becoming the new norm. As per a RedSeer report, the quick commerce market in India is expected to reach USD 5 Bn by 2025. Here are our top picks from this model:
Reads & Recommendations
Before we part ways for this week, take a look at this adorable pupper, Cheddar, one of the first rescues of Red Paws Rescues this year. He likes to spend a cold raining day in Delhi playing, cuddling & napping.
That’s all for today!
Stay tuned for more insights about the D2C start-ups in India.
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Power packed week!