Wonderchef raises ₹150 crore led by Sixth Sense Ventures, Godrej family office

New Delhi: Kitchen products brand Wonderchef Home Appliances that sells branded kitchen appliances, cookware, bakeware, cooktops and chimneys on Tuesday announced a Rs150 crore fundraise led by Sixth Sense Ventures. The Godrej Family office, Malpani Group and other high net worth individuals also participated in the round.

The funding is a combination of primary and secondary investment, the company said. Mauritius-based investment firm Capvent that invested in Wonderchef in 2015 took an exit in the current funding round.

The primary capital raised will be used for expanding the brand's online presence, deepening distribution network and enhancing branding initiatives, the company said in a statement on Tuesday.

Sixth Sense Ventures has led the investment from its third fund Sixth Sense Ventures (SSIO III). SSIO-III and affiliates have invested ₹90 crore in this transaction. SSIO-III has completed 14 investments including Nobel Hygiene, Parag Milk, Neeman’s, Rage Coffee, Storia, Bira among others.

Three years ago, the company, founded by Ravi Saxena and Sanjeev Kapoor in 2009, turned focus towards selling more goods online. Sales have sharply grown since, said Saxena. The covid-19 induced lockdowns too helped the company expand business, as stuck-at-home consumers spent more time cooking indoors. As a result, demand for its cookware surged, said Saxena.

"We started on this digital journey three years ago—margins have improved, working capital utilisation is better, and most importantly, we have been able to penetrate across India," Saxena said. Sales via e-commerce now contribute to half of the brand’s business.

Going forward, the company will expand the digital channel. "We will put up teams for content, tech and for performance marketing," he added.

In all, it sells over 600 products such as non-stick cookware, nutriblend mixers, pans, pressure cookers, kitchen appliances, mixer-grinders, cooktops and other such products. India, it works with three manufacturing units apart from working with various contract manufacturers. Close to 80% of its products are sourced and made locally. For the year ended 31 March 2021, the company reported a turnover of ₹325 crore.

It retails its products through 25 exclusive outlets, over 10,000 multi-brand outlets and a vast network of direct sales women. While online sales continue to grow at a faster clip, expansion offline will continue too, said Saxena. The company will double general trade distribution in the coming years.

In India, Wonderchef competes with the likes of Pigeon by Stovekraft and Milton; its cookware range competes with more dominant brands such as Hawkins and Vinod. India’s market for branded kitchenware products is largely unorganized. The gap between branded and unbranded players makes it an attractive market for new and existing entrants.

Kitchen appliances segment in India is expected to grow in double digits driven by growing urbanization, increasing disposable incomes, and changing lifestyle, said Nikhil Vora, Founder of Sixth Sense Ventures.

Earlier this year, the company announced the appointment of Bollywood actor Kriti Sanon as its brand ambassador.