SUMMARY
- Yu Foods raised ₹55 Cr in Series B funding led by Asian Paints Promoter Group & Ashish Kacholia.
- The firm offers seed investors a 4x exit and plans to expand its food and beverage range.
- Yu aims to triple revenue to ₹150 Cr by expanding distribution and launching new products.
On Friday, Instant food brand Yu Foods announced that it has raised ₹55 crore in its Series B funding round, which was headed by Asian Paints Promoter Group (Manish Choksi, Varun Vakil) and returning investor Ashish Kacholia.
Additionally, the company disclosed that it has given some of its seed investors an exit option with a 4x return on their investment.
As it strives to extend its beverage range with its recently announced 100% fruit juices, the company intends to boost its food offerings and increase distribution. Higher volumes have led to break-out sales for some of its goods, including Coconut Water and Whole Wheat Noodles, on multiple distribution channels.
Bhalla and Kapur, founders of Yu stated, ” With the introduction of 100% fruit juices, our second product category after instant meals, Yu’s version 2.0 is now formally underway. With the Series B growth funding, we should be able to triple our revenues over the next two years, from our current yearly revenue run rate of ₹50 crores. This will include enhanced distribution penetration, new product launches, and further category expansion.”
The Bharat Bhalla and Varun Kapur-led food brand specializes in the ready-to-eat meal category. It focuses on providing healthy, preservative-free, and convenient food options to consumers. The company emphasizes the use of natural ingredients while ensuring a shelf life of up to 12 months for its products without needing refrigeration.
Yu Food-labs raised a series A round in November 2022 in an equity and venture debt mix round led by renowned public market investor Ashish Kacholia, with participation from existing investors Asian Paints Promoter Group. The company has also developed South Africa as a key market, where its products are currently sold across 2,000+ retail outlets.
