Bread Brand The Health Factory Bags $3.5 Mn Seed Funding

Bread brand The Health Factory has secured $3.5 million (Rs 29.2 crore) in its seed funding round led by Peak XV Partner’s accelerator program Surge.

This funding round also attracted a number of its current investors, such as Kartik Mehta (equity sales head at ICICI Securities), Aliasgar Tambawala (family office head at Klay), and Sunil Tulsiani (managing partner at Prodigitz), among others.

With the newly raised funds, the Mumbai-based company intends to broaden its product range beyond just protein and zero maida breads, and to expand its operations.

Additionally, the funds will be utilized to support the company’s research and development efforts, logistics, workforce growth, and the expansion of its operations.

Established in 2018 by Vinay Maheshwari and Mohit Sankhala, The Health Factory specializes in bakery items that focus on promoting consumer health and wellbeing. The company has its products available on fast-commerce platforms like Zepto, Swiggy Instamart, and BlinkIt.

With a presence in major cities including Mumbai, Pune, Bengaluru, Delhi, Chandigarh, Ahmedabad, Lucknow, Hyderabad, and Chennai, the startup is aiming to enter into retail chains in both tier I and II markets.

Moreover, the company plans to introduce new products to its lineup in response to the growing demand for nutritious bakery items among consumers.

The company has reported a growth of 65 times in its sales over the last two years and is set to increase its presence in the retail sector.

This investment comes at a moment when startups are increasingly focusing on offering healthier alternatives to traditional food products.

Last week, D2C health food brand Alpino, which offers a variety of peanut-based products, has received funding from actor Shilpa Shetty and other angel investors, including Paresh Ghelani.