Healthy snacking brand Troovy has raised ₹100 Cr ($10.5 Mn) in a Series B funding round led by existing investor Fireside Ventures, with participation from Sharrp Ventures.
The startup will use the fresh capital to expand its manufacturing capacity and fuel its research and development (R&D) for product development. The D2C brand will also strengthen its distribution across quick commerce and offline channels.
Besides, the startup plans to expand its portfolio into categories like namkeen, biscuits and cookies by January 2027, Baranwal said.
“We will also launch more products in existing categories and build our R&D capabilities. We’re planning to develop new products with parents, as well as innovators from across the country,” cofounder Mansi Baranwal told Inc42.
Founded in 2021 by husband-and-wife duo Mansi Baranwal and Aditya Mukherjee, Troovy initially entered the market with clean-label ketchup and later expanded into the healthy snacking category.
Its portfolio of products includes chips, puffs, sauces, spreads, millet-based pasta, cookies and milk mixes. Chips and puffs are Troovy’s hero categories, together accounting for around 60-70% of sales, as per Baranwal.
Troovy Doubles Down On Offline Expansion
Marketplaces and quick commerce account for roughly half of Troovy’s sales, while sales from its own website brings in about 30%. Offline retail, which the startup recently entered in Delhi NCR, accounts for close to 6% of revenue.
Troovy has begun building its offline distribution network, starting with Delhi NCR and neighbouring areas. It plans to expand into select metro and Tier I markets, initially focusing on Delhi NCR, Rajasthan and Uttar Pradesh, with some presence planned in Punjab and Haryana.
Baranwal said the startup is taking a measured approach as it works out its distribution strategy for offline retail.
“We’re very much in learning mode. We’re trying to figure out the playbook and experiment with different things,” she said, adding that North India is an important market for chips.
The latest fundraise follows Troovy’s $5 Mn Series A round in January this year, led by Fireside Ventures.
“Troovy grew 5X in the eight months following our last investment, and that is what made us double down,” said Ankita Balotia, principal at Fireside Ventures.
The latest fundraise announcement comes months after the startup came under the Food Safety and Standards Authority of India’s (FSSAI) scrutiny over the use of the word “Healthy” in the names of its Veggie Chips, Ragi Chips and Moong Dal Chips.
The regulator said the product names could mislead consumers, despite the products containing other ingredients.
Responding to a question on the food regulator’s crackdown, Baranwal said stricter enforcement of food labelling rules could benefit brands that have invested in product formulation and ingredient transparency.
“I strongly think that this is great for the sector as well as for consumers and the country at large. These regulations exist for the benefit of the consumer, and tighter implementation is always better from a consumer perspective,” she said.
However, she said compliance could add to the costs and operational challenges faced by startups that lack adequate testing infrastructure.
“We do a lot of lab testing, and it puts a lot of pressure on startups like us that don’t have the correct infrastructure,” Baranwal said.
She added that Troovy was also working to reduce sodium levels in its products and limit the use of ingredients it considers undesirable.
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