Packaged Food Startup Alimento Agro Raises INR 52 Cr To Strengthen Distribution

Mumbai-based packaged food startup Alimento Agro Foods has raised INR 52 Cr (about $5.8 Mn) in its Series A funding round from IvyCap Ventures.

The startup plans to use the capital for expansion of its manufacturing capacity, strengthening nationwide distribution, and accelerating product innovation.

Founded by Prateek Bhagchandka and Mugdha Bhagchandka, Alimento Agro operates two food brands. It launched MOM – Meal of the Moment, under which it offers instant home-style meals like vegetable biryani, masala upma, pongal, pav bhaji, and healthy snacks such as roasted makhanas and masala oats, in 2017.

Alimento launched Korean-inspired noodle brand Gimi Gimi earlier this year. It sells ramen varieties such as umami and veg carbonara.

The startup sells its products via ecommerce platforms like Amazon and quick commerce platforms like Blinkit, JioMart and Swiggy Instamart.

“… MOM and Gimi Gimi are gaining strong traction. Our long-term vision is to build Alimento into a house of culturally relevant, consumer-loved food brands… ,” cofounder and chief executive Prateek said.

The development comes at a time when the demand for healthy snacking options and instant meals has been surging. This demand is being driven by changing consumer behaviour due to rising disposable incomes and growing urbanisation.

The ready-to-eat meal and instant mixes segment in the Indian food market is expected to reach a size of $6.6 Bn by 2033, clocking a 5.3% CAGR. Investors are looking to add startups operating in this segment to their portfolio to capitalise on this opportunity.

Yesterday, D2C brand WickedGud, which sells ready-to-cook (RTC) products like instant noodles, pasta and chips, raised INR 20 Cr ($2.2 Mn) from existing backers including actor Shilpa Shetty, Orios Venture Partners and Asiana Fund.

Knorr, Maggi, MTR Foods, and iD Fresh Food are among the brands which operate in the quick-meal segment.