Two Brothers rides India's organic food wave with ₹110 crore funding
India's organic food market is booming, and large FMCG companies are investing in such brands, signalling growing consumer awareness around clean labels and nutrition among consumers.
New Delhi: Organic foods products company Two Brothers Organic Farms, based in Pune, has raised ₹110 crore in a Series B funding round led by 360 ONE Asset, Rainmatter Investments, Narotam Sekhsaria Family Office and Rahul Garg of Ignite Growth LLP.
The funding comes at a time when large fast-moving consumer goods (FMCG) companies are investing in organic food brands, signalling growing consumer awareness around clean labels and nutrition among consumers. Tata Consumer products has picked up a stake in Organic India and ITC Ltd has done so with 24 Mantra.
Earlier this year health food brand Anveshan raised ₹48 crore in a Series A funding round led by Wipro Consumer Care Ventures. It will use the capital primarily to expand it manufacturing capabilities, expand its international reach, and scale its operational capacity.
In June 2024, Two Brothers Organic Farms raised ₹58.25 crore in a Series A round largely led by Rainmatter, an investment platform owned by Zerodha, along with investors such as Raju Chekuri, founder of NetEnrich.
Organic growth
Founded by fourth-generation farmers Ajinkya and Satyajit Hange, Two Brothers Organic Farms sells more than 100 products including A2 cultured ghee, khapli atta, peanut butter, honey, pickles and cold-pressed oils.
“What began on two gas stoves on our farm has now turned into manufacturing facilities spanning over 60,000 square feet," Satyajit Hange said in an interview with Mint. “We were completely bootstrapped for the first five to six years. We began by selling at farmers’ markets in Mumbai every Sunday before launching our online business six years ago," he said. The company now clocks average monthly revenue of ₹20 crore, with 95% of sales coming from online channels.
A portion of the new funds raised will go towards building a large integrated food park in Maharashtra. “We plan to invest up to ₹10 crore from this fundraise to start creating a food park ecosystem. It will be spread across 10-15 acres and include everything related to food manufacturing—labs, packaging, weighing scales, water treatment, farmer training facilities and more. The total investment will happen over three to five years."
Health food boom
India's organic-food market (domestic and exports) is currently estimated at ₹10,000 crore in size. According to a September note by Worldpanel by Numerator (formerly Kantar), health-oriented foods and beverages now representing ₹63,093 crore in value, having grown at 11.7% compounded annually over the past four years.
Stalwarts are lining up to tap the opportunity. In January 2024 Tata Consumer Products Ltd (TCPL) acquired Organic India for an estimated ₹1,900 crore to create a ‘health and wellness platform’.
And in April 2025 ITC Limited acquired Sresta Natural Bioproducts Private Limited, which sells organic foods under the 24 Mantra Organic brand, for ₹472 crore. The company said at the time the category had high growth potential, given the low penetration levels and growing consumer preference for natural and organic foods.
Premium pricing
At ₹3,370 for a one-litre jar of A2 Gir Cow-Cultured Ghee, Two Brothers is at the top end of the premium market. A litre of Amul ghee costs ₹650.
“Yes our products are premium, but 45% of our consumers are from metro cities and 55% from smaller towns. With scale, we intend to pass on savings and lower prices. Some of our products like wood-pressed oils and jaggery powder are already very competitively priced because of our backward integration."
The company plans to go deeper into its core staples and expand its kitchen and dining table offerings. It aims to close FY26 with revenue exceeding ₹200 crore, up from ₹108 crore in FY25. “Awareness around organic and chemical-free food has grown drastically—especially post-covid," Hange added.
This ‘organic trend’ will become stronger as awareness around health and wellness grows, said Devangshu Dutta, founder and chief executive of consulting firm Third Eyesight. “For most brands, initially the consumption may be driven by upper-income customers, perhaps located in a few of the largest cities," he said.
He added, however, that companies may face challenges in execution owing to the rampant use of harmful fertilisers and pesticides in India. Because of this, brands will find it hard to maintain their organic nature unless they work with an ever-growing number of cultivators over large tracts of land over the years, he said. "To do this profitably, brands do need to scale significantly, and for this their price premium must drop," Dutta added.
topics
