With Eye On Bolstering D2C Play, ITC To Acquire Meatigo

With an eye on expanding its D2C play, FMCG giant ITC has signed definitive agreements to acquire 100% stake in D2C meat delivery startup Meatigo’s parent. 

In an exchange filing, ITC said that the deal will also see the FMCG company take over parent Prasuma’s other brands including frozen foods vertical “Prasuma Momos” and cloud kitchen arm “Prasuma Momo Kitchen”.

At the outset, ITC will acquire 43.8% equity stake in frozen food entity Ample Foods Private Limited (AFPL) in lieu of an initial investment of nearly INR 131 Cr through primary subscription and secondary purchases. This is expected to close by March 2025. 

Thereafter, ITC will increase its shareholding in the company to 62.5% by April 2027 via secondary purchases to the tune of INR 56 Cr, which will be undertaken on a pre-agreed pre-money valuation. 

Finally, ITC will acquire the remaining 37.5% stake in the AFPL as well as 100% stake in Meat and Spice Private Limited (MSPL) by June 2028 on a “pre-agreed valuation criteria”.

In a statement, ITC said that the acquisition will further fortify its presence in these future-facing categories, expand its reach in the food service channel and drive efficiencies in manufacturing and logistics. On the other hand, Prasuma will leverage ITC’s deep distribution network and synergies with respect to agri-inputs in the space. 

Founded in 2018 by Lisa Suwal and Siddhant Wangdi, Meatigo is a D2C brand that delivers meat through its own app and website. Meanwhile, Prasuma Momo Kitchen operates 40+ cloud kitchens that deliver Pan Asian offerings to users. 

“We are delighted to back Prasuma and look forward to jointly building an unparalleled, full stack frozen, chilled and ready to cook foods portfolio… This investment reaffirms our commitment to building future facing, best in class, innovative portfolios,” said ITC wholetime director Hemant Malik.

Commenting on the acquisition, Prasuma cofounders Lisa Suwal (CEO) and Siddhant Wangdi (COO) added, “We are extremely proud of what we have built and excited to join hands with ITC to drive the next phase of growth… With Prasuma’s strength in manufacturing and innovation, combined with ITC’s expertise in distribution and building new-age brands, we are excited about the significant value that this collaboration will create for consumers in India and globally”.

Notably, this is not the first time that ITC has acquired a stake in an Indian D2C brand. In 2023, the FMCG major signed a deal to acquire D2C snacking brand Yoga Bar. It also acquired a 10.07% stake in D2C mother and baby platform Mylo in 2022. In the same year, ITC also increased its stake in the baby and mother care D2C startup Mother Sparsh to 22%.

At the heart of all this is the growing India’s D2C ecosystem, which boasts more than 50,000+ digital-first brands across different sectors. As per Inc42 report, the homegrown D2C market is projected to become a $300 Bn opportunity by 2030. 

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