Inc42 Media’s Post

Excited to share that my insights on the premium consumer brand space in India were featured in the LiveMint, which highlights this view and overall investment strategy on the consumer space. At Sauce.vc, we've consistently recognized premiumization as a strong investment theme through the years. The landscape is evolving with established digital playbooks and the rise of quick commerce, allowing brands to scale quickly and effectively. Yet, the push towards more specialized, sharply-defined premium brands reflects a growing consumer demand for uniqueness and quality. Brands like The Whole Truth Foods, Mokobara, and Innovist exemplify this shift towards products that are not only premium but also distinct and innovation-driven. Dive into the full article to explore how this trend is reshaping the industry and driving strategic investments. #Investment #ConsumerGoods #Premiumization #VentureCapital

It has been a week to remember for $20 billion Indian Beauty and Personal Care (BPC) industry with Back to back 100 crore+ fund raise by Foxtale and Renee. Traditionally dominated by FMCG giants and premium overseas brands, indian startups are making a mark now by growing 2x than FMCG led brands driven by increased ecommerce penetration and burgeoning Indian middle class. While the industry is growing at 11%, sale through online channels is expected to grow at much higher 30% for next few years which would clearly aid mushrooming startups as the distribution moat of bigger brands won't make a difference here. Also this is one segment where mass commoditisation may not work as new age customer wants personalised solutions suiting their skin and body types. Modern customers are more aware than ever before and want nothing short of the best, hence continuous innovation and R&D is the key to retain loyal customer base. Sustainability and international influences such as Korean and Japanese beauty products are other themes likely to play out in the market. The sudden remarkable rise of quick commerce, awareness about natural ingredients and fast evolving technology trends such as virtual try-ons, AI powered product recommendations are also likely to play a key role in shaping the industry. With most of the brands claiming to be on path to profitability in a year or two, successful IPOs of Mamaearth and Nykaa in Indian bourses, BPC segment stands out as one of the most attractive spaces to be for founders and investors alike. #beauty #skincare #startups

The #coffee space has always been favored by investors, but some suggest that the current "FOMO" within the #investor community may be influencing certain investments. Companies seeking funding possess distinct #core competencies, are at various #stages of their development, and offer unique #value propositions to customers. For all brands, "out of cafe" business—such as #B2B, #Vending, #ODC, and HoReCa—remain consistent growth levers that will attract future funding rounds Ready-to-drink (RTD) beverages provide a significantly different #experience from that of cafe-brewed drinks, often prioritizing #convenience and serving as a tool for new customer acquisition. Consumers, in some markets, have now reached the maturity phase of the "third wave of coffee,"(not referring to brand here) which emphasizes specialty coffee sourced from small farms and artisanal producers. The upcoming "fourth wave of coffee" is expected to revolutionize the industry with a focus on sustainability and brewing technology. Despite this, India's diverse landscape presents vast opportunities for coffee consumption beyond the top 7-8 cities, contingent on well-designed go-to-market strategies and product-market fit. #investments #startups #funding #coffee #angelinvestments

Jyoti Bhardwaj's entrepreneurial journey began in 2015 when she discovered that her body had started to resist insulin. This realization was a wake-up call, prompting her to embark on a mission to transform her lifestyle and find healthier beverage options. As she explored the market, Bhardwaj was dismayed to find that even seemingly "healthy" drinks were often loaded with sugar, leaving her with a burning desire to create a better alternative. Bhardwaj’s eureka moment came when she discovered the concept of zero-sugar bottled teas, which she had observed in Japan. This revelation sparked her determination to bring a similar concept to the Indian market, where the demand for healthier beverage options was growing, particularly in the wake of the COVID-19 pandemic. In 2021, Bhardwaj officially launched TeaFit, a health-focused, sugar-free beverage brand. However, the journey to perfecting the product was not without its challenges. Bhardwaj spent countless hours and conducted over 130 iterations to suppress the bitterness in the tea and create a flavor profile that appealed to the Indian palate. Her dedication and perseverance paid off, as TeaFit’s unsweetened bottled teas and tea premixes, crafted with tea leaves from Assam, Arunachal Pradesh, and Kerala, quickly gained a loyal following. Initially, she focused on making the brand available in Nature’s Basket stores in Mumbai, but soon realized that this limited reach was not enough to drive significant sales. Undeterred, she pivoted to an online-first approach, leveraging her brand’s website and entering quick commerce platforms like Zepto and Blinkit. This strategic shift proved to be a game-changer, with online channels now accounting for 70% of TeaFit’s sales. Bhardwaj’s appearance on the popular TV show Shark Tank India in 2022 was a turning point for TeaFit. Prior to the show, the startup had earned just Rs 15 Lakh in the previous fiscal year. However, the exposure and validation from the Sharks propelled the brand’s growth, with revenue surging to more than Rs 90 Lakh in the following fiscal year. Currently they made Rs 3.4 crore revenue (FY24). TeaFit Jyoti Bharadwaj #StartupStory #TeaFit

Founded by Kiran Shah in 2022, Go Zero manufactures zero sugar, high protein and low calorie ice creams. It has its presence in more than 16 Indian cities including Mumbai, Pune, Bangalore, Delhi NCR, Hyderabad and Chennai among others. A Market Research study shows that Indian ice cream market size reached INR 194.1 Bn in 2022 and is expected to reach INR 508.4 Bn by 2028 at a CAGR of 17.5% during 2023-2028 At Cofounder Ventures, we empower startups by simplifying fundraising, connecting visionary entrepreneurs with strategic investors, and accelerating innovation to build a thriving ecosystem of groundbreaking ventures and transformative growth. https://lnkd.in/dCQiM7cc

Did you know that the Indian government once launched a soft drink brand called Double Seven since #CocaCola withdrew from India in 1977 in response to the Foreign Exchange Regulation Act introduced by the Morarji Desai government? The Indian beverage industry is often called the “graveyard of brands" as many many unorganised brands and even giants like #TATAs, #Reliance, and #Bisleri release new soft drink brands almost every year, but many fail including double seven. Even heavyweights like PepsiCo and The Coca-Cola Company controls only 33 percent of India’s carbonated beverage market share even after spending billions of dollars in marketing spends. Amidst this red ocean market, one #Punjab-based beverage startup took a bet on traditional Indian flavors, found a unique gap, and defined the category of desi drinks in India and built a ₹1000 crore brand, priced at just ₹10, thriving without traditional marketing until recently. Lahori Zeera, started in 2017, today has the ability to produce 3 million bottles a day, employs 300 people, and has raised $23 million—all while being profitable from day one. Watch the fascinating growth journey of #LahoriZeera, co-founded by Saurabh Munjal, Nikhil Doda and Saurabh Bhutna on Exploring Minds Podcast. #entrepreneurship #startups #mohali #chandigarh #fmcg #beverage #brands #softdrinks #casestudy #podcast Link to full episode in first comment.

🥛Frubon Raises Series A Funding to Expand Retail Presence in North India. 💡Key Points: - Dev Milk Foods, operating under the brand Frubon, has secured Series A funding from Fireside Ventures, Pi Ventures LLP, and angel investors. - The Jaipur-based startup plans to utilize the funds to expand its retail footprint across North Indian cities, strengthen production and distribution capabilities, and diversify product offerings. 🚀Funding and Growth Plans: - The undisclosed investment will fuel Frubon's expansion efforts, enabling it to penetrate deeper into North India's dairy market. - Founded in 2017 by DD Verma, Frubon specializes in ice cream, milk, and various dairy products, aiming to address market gaps and opportunities strategically. 🛒Retail Presence and Competition: - Frubon's products are currently available in 40 cities and towns across North India, distributed through a network of distributors and omnichannel platforms like Blinkit and Big Basket. - Competing with players like MilkMantra, Country Delight, and Stellapps, Frubon aims to strengthen its market position amidst growing competition and increasing consumer demand. 📈Market Insights: - The Indian dairy market, estimated at over $71 billion in 2024, is projected to grow at a compound annual growth rate (CAGR) of 6.77% by 2028, presenting significant opportunities for dairy startups like Frubon to capitalize on. 📊Conclusion: - With robust growth projections and strategic funding, Frubon is well-positioned to expand its presence in North India's dairy market, catering to evolving consumer preferences and driving innovation in the dairy industry. #Frubon #SeriesAFunding #DairyStartup #NorthIndia #RetailExpansion #StartUpNews #BusinessNews #MicroShots #NewsUpdates

#InnovationOpportunity While taste still remains important, with the rise of health-conscious consumers, sugar-free and low-calorie beverages are growing in demand. We incubate ventures and scale brands in India. Email: team@northside.co.in Website: www.northside.co.in Vidur Vyas Akash Singh Thakur Mallika Nayar Pranav Mehra Gaurav Mehta Krishanu Chakravarty Dhruv Sabharwal Soumya Chadha #consulting #marketresearch #marketfit #brandmarketing #brandconsulting #incubation #marketgrowth

Interesting positioning for an organic laundry product!

TheHealthFactory, a health-focused bread brand, has secured $3.5 million in seed funding led by Peak XV's Surge. The company plans to utilize the funds to expand its retail presence, enhance logistics and operational technologies, and improve accessibility to healthier bread options for consumers. Founded in 2018, The Health Factory offers various preservative-free products such as Protein Bread, Vegan Protein Bread, and zero maida bread, available in major Indian cities like Mumbai, Delhi, and Bengaluru. The Health Factory, an innovative health-focused bread brand, was established in 2018 by Vinay Maheshwari, Mohit Sankhala, and baking expert Jos Vast. They produce preservative-free products such as India's first high protein bread, protein bread, vegan protein bread, and zero maida bread. These nutritious alternatives aim to cater to the increasing demand for healthier bread options in major cities like Mumbai, Delhi, and Bengaluru. The company recently secured $3.5 million in seed funding led by Peak XV's Surge, enabling them to expand their reach to more consumers and improve their logistics and operational technologies. Their mission is to make healthy bread accessible to all who desire it, without compromising on taste. Factacy.ai Congratulates and wishes them well. #innovation #management #digitalmarketing #technology #creativity #futurism #startups