Impact investor Aavishkaar Capital on Thursday announced leading the Rs 41 crore equity funding in Bengaluru-based packaged foods startup Go DESi. Existing investors Rukam Capital, Roots Ventures and DSG Consumer also participated in the round. This was the seventh investment from the $150 million Aavishkaar India Fund VI that focuses across impact sectors including financial inclusion, sustainable agriculture, climate, consumer and healthcare in India.
The latest funds raised will be deployed by Go DESi towards business expansion geographically, deepen SKU presence, and build and strengthen capacity, it said in a statement.
Speaking on this fund raise, Vinay Kothari, Founder, Go DESi, said, “There are immense opportunities in the packaged food industry in India which is growing rapidly at 20-25%.”
“The funding partnership with Aavishkaar Capital will help Go DESi strengthen its product portfolio, accelerate marketing, rapidly scale our geographic focus and expand our distribution reach,” Kothari said.
Founded in 2018 by Kothari and his sister Raksha Kothari, Go DESi was featured in Shark Tank-Season 2.
“We are excited to welcome Go DESi into the Aavishkaar family and join their journey of transforming the confectionary landscape in India – while impacting the rural economy. The company has created a strong brand name and a robust distribution engine in a short time,” said Divya Gupta, Investment Director, Aavishkaar Capital.
The Indian confectionery market size, the company said, is over $17 billion. While the Western segment is highly organised by established global MNCs, the Indian segment, which accounts for $10 billion of this market, is 90 per cent unorganized, sold in loose, unbranded formats, and suffers from low hygiene and quality standards.
“This makes it an exciting market for new age brands to emerge and capture,” said Go DESi which claimed to have sold over 15 million units and the products are available in over 40,000 stores across the country.
Aavishkaar Capital had earlier backed millet-based food brand Soulfull where it was one of the early movers in identifying the potential for millet-based products in India. The company was later acquired by Tata Consumer Products, to expand their food portfolio in India.