Go Desi secures $4.9 million investment

May 3, 2024

Bengaluru-based packaged foods startup, Go Desi, announced on Thursday that it has secured Rs 41 crore (approximately $4.9 million) in equity investment from Aavishkaar Capital. The Series B round also witnessed contributions from existing investors Rukam Capital, Roots Ventures, and DSG Consumer, as stated by the company.

According to Go Desi, the funding will be allocated towards geographical business expansion, enhancing the presence of stock-keeping units, and fortifying operational capacity. Specialising in regional treats tailored to the Indian palate, the company’s flagship product, Desi Popz, enjoys popularity both on online marketplaces, quick-commerce platforms, and within general trade stores.

Established in 2018 by siblings Vinay and Raksha Kothari, the startup has demonstrated considerable growth, reporting a monthly revenue of Rs 3.5 crore. Vinay Kothari expressed aspirations to elevate this figure to approximately Rs 9 crore within the next 18 months.

Having previously raised Rs 31 crore in 2022 from Rukam Capital, Roots Ventures, and DSG Consumer, Go Desi has garnered recognition for its brand reputation and efficient distribution network. Divya Gupta, investment director at Aavishkaar Capital, commended the startup’s progress, stating, ‘The company has created a strong brand name and a robust distribution engine in a short time. We believe the opportunity is very significant and the Go Desi team has all the right ingredients to capture the dynamic confectionery market in India.’

Citing statistics from the company’s statement, the confectionery market in India exceeds $17 billion in size. While the western segment is largely dominated by established global multinationals, the Indian segment, accounting for $10 billion, remains predominantly unorganised, characterised by loose, unbranded formats with low hygiene and quality standards.

With over 15 million units sold and products available in more than 40,000 stores nationwide, Go Desi continues to assert its presence within the Indian confectionery landscape.

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