New Delhi, May 13 -- Farmley, a nuts and dry fruit brand, operated by Connedit Business Solutions Pvt. Ltd, has raised $40 million (about Rs 340 crore) in its Series C round led by consumer-focused American private equity firm L Catterton.
The New Delhi-based startup's existing investors such as venture capital firm DSG Consumer Partners also participated in the round, it said in a statement.
Farmley said it intends to use the capital to tap more regional markets and add more product offerings.
"Our roadmap includes penetrating untapped regional markets, developing cutting-edge product formulations that blend nutrition with exceptional taste, and leveraging advanced food technology to create snacks that truly nourish both the body and the palate," said co-founders Akash Sharma and Abhishek Agarwal.
Founded in 2017 by Sharma and Agarwal, Farmley is a healthy snack brand that offers dry fruit and nuts in various flavours and formats. It sells indulgent yet guilt-free snacks based on dried fruits and nuts including flavoured makhanas, trail mixes, date bites, and seeds through its omni-channel distribution network.
The startup said its revenue has grown by about 55% annually over the past two years to reach around Rs 370 crore in the last financial year.
The latest funding comes about 15 months after the brand raised $6.7 million in a pre-Series B round in December 2023, led by BC Jindal Group. Previously, in 2022, Farmley raised $6 million as a part of a Series A round co-led by DSG Consumer and Alkemi Ventures, with participation from Omnivore and Insitor Partners along with angel investors.
The Series C funding also includes a 30% secondary component that provides exit to some of Farmley's early-stage investors, including Insitor and Samunnati, along with employees with stock options, according to a report by The Economic Times.
"Farmley has been able to capitalise on long-term consumer trends with its better-for-you positioning and high-quality products which resonate with customers," said Anjana Sasidharan, L Catterton Partner and Head of India. "Its robust dried fruit and nut sourcing capabilities, prolific new product development engine, and strategic partner status across key sales channels have been vital drivers of the company's growth in its category."
L Catterton's other investments in packaged-food brands include Cholula Hot Sauce, Ferrara Candy Company, Goodles, Kettle Foods, Kodiak, Little Moons, NotCo, Planted, and Plum Organics.
Published by HT Digital Content Services with permission from VC Circle.