Drums Food raises Rs44.5 from investors led by DSG Consumer
The funding will be used for setting up a new production facility and hiring of senior people, says Drums Food International CEO Rohan Mirchandani
Mumbai: Drums Food International Pvt. Ltd, the maker of Epigamia Greek yogurt and Hokey Pokey ice cream, has raised ₹ 44.5 crore in Series A funding, selling a minority stake.
The round was led by Verlinvest, a Belgian consumer-focused private equity group, and DSG Consumer Partners (DSGCP), an early stage venture capital firm run by Deepak Shahdadpuri.
Prior investors Fireside Ventures, headed by former Helion Ventures co-founder Kanwaljit Singh; Apurva Salarpuria of the Salarpuria Group’ and Bollywood actor Kunal Kapoor, founder of crowd funding platform Ketto, also participated in the round.
Drums Food, which launched its first brand Hokey Pokey in January 2014, closed the 2016 financial year with revenue of ₹ 13 crore. It’s targeting ₹ 40 crore in revenue in the current year.
“The funding will be used for setting up a new production facility, invest in supply chain and cold chain and also hiring of senior people," said Rohan Mirchandani, co-founder and chief executive officer, Drums Food International.
Mirchandani did not disclose the valuation and the percentage of equity diluted.
“This investment represents our first co-investment alongside DSGCP and fits well within our partnership to be a long-term supporter of young brands and talented entrepreneurs in growing categories in India," said Nicholas Cator, executive director, Verlinvest.
This is a rare venture-stage investment for Verlinvest, which typically looks at larger deals in the $50-$100 million range in India and globally, he said.
Epigamia is currently available across 1500+ retail stores such as Godrej Nature’s Basket, Future Group’s Foodhall and Big Bazaar, Hypercity, e-commerce platforms such as Big Basket, and numerous retailers spread across Delhi and the National Capital Region, Mumbai, Bangalore and small pockets of Chennai and Hyderabad.
In June, Cremica Food Industries Ltd, a Ludhiana-based food products firm, raised $15 million from Rabo Equity Advisors Pvt. Ltd, the investment advisors for India Agri Business Fund, Mint reported. Cremica, known for its sauces, condiments and snacks, is looking to achieve sales of Rs.1,000 crore by 2020, growing from ₹ 200 crore in 2014-15.
In May, The Economic Times reported that Maiyas Beverages and Foods, founded by P. Sadananda Maiya, also the founder of the popular Bengaluru-based firm MTR Foods Pvt. Ltd, raised ₹ 200 crore from PE firm Peepul Capital and existing investor Ascent Capital.
In the last five years, PE and VC investors have put $821 million into consumer-facing food and beverage businesses, according to data from Venture Intelligence, which tracks deal activity.
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