Startup funding: Snacking startup Natch has secured Rs 3 crore in seed round funding led by Artha Venture Fund (AVF) along with participation from the financial services company DSP Group’s family office. The startup said it plans to deploy the capital to expand its omnichannel presence, improve distribution, increase marketing efforts, and innovate in product development.
Founded in 2017, Natch said it offers natural, gluten-free and vegan snacks free from artificial flavours, preservatives and trans fats.
“We are thrilled to partner with Artha Venture Fund and DSP Family Office, marking an important milestone for Natch. Their support is crucial as we aim to set a new standard in premium snacking in India. With this investment, we are well-positioned to broaden our reach, enhance our production capabilities, and introduce innovative products to our customers worldwide,” said Matthew Taff, Co-founder, Natch.
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The startup sells through retail stores and e-commerce channels and has recorded a 300 per cent jump in revenue in the past 18 months along with a 30 per cent growth in customer-facing touchpoints. E-commerce contributes 15 per cent to the startup’s total sales.
Natch plans to enter metropolitan and tier 1 cities across India and increase its presence in the quick commerce sector.
Anirudh A. Damani, Managing Partner, Artha Venture Fund said, “The global snacking industry is undergoing a significant transformation, with a noticeable shift towards healthier options. Natch has successfully captured a niche in this evolving market with its commitment to quality and understanding consumer preferences.”
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AVF is an early-stage micro VC firm with a corpus of Rs 225 crores, primarily focusing on B2B SaaS, and D2C segments. The fund has made 31 investments including AgniKul, LenDenClub, Everest Fleet, Daalchini, and others
According to the data platform Statista, the Indian snacks market was worth $66.92 billion in 2023 and is expected to grow annually by 9.01 per cent CAGR till 2028. The volume in the Indian snacks market is expected to amount to 19.02 billion kg by 2028 and grow by 6.6 per cent in 2024.