Khetika Bags $18 Mn To Sell Preservative-Free Processed Foods

Healthy food brand Khetika has raised $18 Mn in its Series B round co-led by the Narotam Sekhsaria Family Office and Anicut Capital. The round also saw participation from existing backers Incofin India Progress Fund, Rajasthan Gum, and Shree Ram India Gums.

The funding round will provide a secondary exit to SIDBI Venture Capital Limited (SVCL) and a few angel investors.  

The fresh inflow of funds will be used to expand Khetika’s product range and ramp up its manufacturing. The company plans to introduce a fresh lineup of ready-to-eat offerings and regional food products by using traditional recipes and clean processing methods. 

The venture plans to triple its production over the next year and a half. Investments will also go towards automated processing units and local hubs to keep products fresh and trim transport times.

Founded in 2017 by Prithwi Singh, Darshan Krishnamurthy and Raghuveer Allada, Khetika claims to sell preservative-free, minimally processed foods like batters, chutneys, spices, millets, makhana, rice and dry fruits. With its farm-to-fork model, it claims to tackle food adulteration and offer healthy alternatives to customers.

Scaling Slowly, Yet Steadily

On the technology front, Khetika will allocate a significant portion of the funds to scale up its supply chain platform, SuperZop, which currently hosts over 25,000 farmers from 14 states. Notably, Khetika was originally launched as SuperZop in 2017, functioning as a B2B platform for the procurement of essential food commodities. However, in 2021, the company pivoted to a more D2C business model under the brand name Khetika.

The company is now also looking to bolster its presence in India and explore export opportunities to the Middle East, Southeast Asia, and the UK – regions with rising demand from the Indian diaspora for healthy staples.

To support this growth, Khetika also plans to ramp up hiring across key areas like research, marketing, and operations. Meanwhile, a portion of the funds will be spent on promoting the brand, expanding retail partnerships, and increasing direct sales to customers. 

Khetika currently sells its products through ecommerce and quick commerce platforms like Amazon, BigBasket and Blinkit, as well as in modern stores and more than 15,000 small shops.

On the financial front, Khetika clocked sales worth INR 163.8 Cr in the fiscal year 2023-24 (FY24), up 32% from INR 123.7 Cr in the year-ago fiscal. Meanwhile, the company trimmed its net losses by 30% to INR 9.6 Cr in the fiscal under review from INR 13.8 Cr in FY23. 

Speaking with Inc42, cofounder Singh said that Khetika harvested INR 247 Cr in revenues in FY25. Refraining from spilling the bottom line numbers, Singh said that the company almost broke even in FY25. 

He added that the ongoing investments in building a team and facilities impacted its bottom line in the just-concluded fiscal. For context, Khetika’s recent investments include a new batter plant in Delhi and a spice processing unit in Gujarat’s Unjha.

According to Singh, the company is focussed on growing its revenues 10X over the next three years. It claims to be working on new recipes and cleaner food formulas, including ready-to-cook and functional foods. It is testing QR codes on packaging that let buyers trace where and when their food was grown and processed.

At the heart of all this is the Indian health food market, which is expected to become a $30 Bn opportunity by 2026. Amid growing demand for healthy options, numerous startups have entered the space and attracted strong investor interest. 

Slurrp Farm, The Whole Truth, Eat Better, Pluck, Tata Soulfull, and various other D2C startups are competing in the rapidly growing health food market.

In January, healthy food brand Salad Days raised INR 30 Cr in its Series A round co-led by V3 Ventures and Client Associates Alternate Fund. A month ago, D2C snacking brand Farmley bagged $40 Mn in its Series C round led by L Catterton.