Delhi-based specialty food ingredients manufacturer, Veeba Foods has raised $6 Mn in series B round of funding led by investment firm DSG Consumer Partners and Saama Capital.
Veeba Food manufactures and markets a range of food ingredients like sauces, dips, emulsions & dessert toppings for QSR, pizza and bakery chains. The company counts Yum Brands, Domino’s Pizza, KFC, Dunkin Donuts, Taco Bell, TajSats and Pizza Hut as its customers.
The fresh funding will be utilized to expand its manufacturing capacity and to build a portfolio of packaged foods it can sell directly to customers.
Speaking on this development, Viraj Bahl, Founder and CEO of Veeba Foods said, “With the fresh capital infusion, we are excited to now enter the retail market in the near future with a range of unique products that will leverage our expertise in the sauces and dressings segment.”
Founded in 2012 by Viraj Bahl, the company is promoted by the Delhi-based Bahl family, which has been associated with the food processing industry since 1983. The company has a turnover of around $3 Mn (INR 18 Cr) and going to open a new plant in Neemrana in Rajasthan to cater better to its institutional clients.
“The food services industry is at a point of inflection and Veeba is well positioned to be a leading player with best in class product development, manufacturing and distribution addressing most key market segments, said Deepak Shahdadpuri, Managing Director, DSG Consumer Partners.
Ash Lilani of Saama Capital believes that the specialty food ingredients sector in the country is underdeveloped and poised for significant growth in the near term. This growing market needs combined with the belief that the team could build a business rooted in innovation led customer centricity and high quality product were some key reasons to invest in the company.
According to the market report, Indian food and grocery market is projected to grow at the rate of 104%, touching $482 Bn by 2020, out of which the Indian food processing industry accounts for 32%.
DSG Consumer Partners is a Singapore and India-based investment firm founded by Deepak Shahdadpuri. So far, the firm has invested in other food companies like Exito Gourmet, Tierra Foods, Saraf Foods, Bakers Circle, Indian Home Gourmet and Redmart.