Through this deal, Sixth Sense has also bought a stake in Pushp from its initial institutional investor A91 Partners
Indore-based Pushp is known for processing and blending spices like chilli, turmeric and coriander
According to a regulatory filing by Tofler, Pushp recorded a 20% YoY growth in its FY23 operating revenue to INR 338 Cr, while its profit declined from over INR 16 Cr to nearly INR 10 Cr due to rising raw material prices
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Consumer-focused fund Sixth Sense Ventures, which has backed companies like Bira91, Vahdam and Veeba Foods among others, has invested INR 100 Cr (around $12 Mn) in Indore-based spices brand Pushp.
Sixth Sense Ventures founder and CEO Nikhil Vora told ET that through this deal the VC firm has also bought a stake in Pushp from its initial institutional investor A91 Partners.
A91 Partners, an investment firm floated by former Sequoia India executives Abhay Pandey, VT Bharadwaj and Gautam Mago, acquired a 25% stake in Pushp for INR 125 Cr in 2020.
Pushp is known for processing and blending spices like chilli, turmeric and coriander.
Founded by industry veterans, Mahendra and Surendra Surana, Pushp has strategically invested in distribution and branding efforts, extending its reach beyond Madhya Pradesh to states like Maharashtra, Rajasthan, Uttar Pradesh, Bihar, and Gujarat. With a consistent revenue growth of 25% CAGR over the last five years, Pushp plans to evolve from a regional leader to a significant national brand.
The company aims to expand its national footprint in the INR 90,000-Cr market. Of this, the branded spices market is estimated to be around INR 25,000 Cr.
Over the last 12-15 months, FMCG companies such as Dabur, Wipro Consumer Care, Tata Consumer, and Emami Agrotech have either entered or strengthened their presence in this segment.
Other legacy players in the spices market include Everest Food Products and MDH.
“One key thing that I’ve seen in the consumer market is that incrementally a lot of disruptors are emerging from regional powerhouses,” Vora said.
According to a regulatory filing by Tofler, Pushp recorded a 20% year-on-year (YoY) growth in its FY23 operating revenue to INR 338 Cr, while its profit declined from over INR 16 Cr to nearly INR 10 Cr due to rising raw material prices.
“With a consistent revenue growth of 25% CAGR (compound annual growth rate) over the last five years, Pushp is evolving from a regional leader to a significant national brand,” the company said in a statement.
The funding coincides with the government’s push to explore new spice markets, strengthen existing ones, and promote value-added products to elevate spice exports from the current $4 Bn to $10 Bn by 2030.
India, the world’s largest spice producer, commands a 70% share in global spice production. The global spices and seasonings market is projected to grow at a CAGR of 5.7%, reaching $35.1 Bn by 2028, according to a report by IMARC Group.
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