Orkla Group, the parent company of MTR Foods, had set up the Rs 50 crore venture fund, christened MTR Seed Fund, last year to invest mainly in food tech-related startups in India over 2017 and 2018.
MTR Foods Pvt. Ltd. has debuted in investment arena by investing from its Rs 50 crore seed fund in early stage start-up FirmRoots Pvt. Ltd., mainly for the latter's children-packaged food brand Timios.
Orkla Group, the parent company of MTR Foods, had set up the Rs 50 crore venture fund, christened MTR Seed Fund, last year to invest mainly in food tech-related startups in India over 2017 and 2018. The company had said it takes a stake ranging between 26% and 49% in the start-ups. It will also give the portfolio startups access to MTR Foods research and discussion team, as well as to the company's in-house group of chefs or common services such as branding, legal assistance, treasury, and accounting services.
FirmRoots was started as a solution towards age-appropriate nutrition and has a product range called Timios exclusively for children in the age group of 6 months to 12 years.
Along with the investment, MTR Foods will also mentor the brand on various aspects of the business including marketing, sales and distribution strategy, food safety standards, management of resources among others.
"As the first investment from the seed fund - FirmRoots is a great start, as the company has brought forth a range of snacking products that are apt for the nutritional needs of children – a space that is hitherto untapped. We are pleased to be their partner in their journey," Sanjay Sharma, CEO, MTR Foods, said in a statement.
"Along with the investment from the MTR Seed Fund, we will also value the mentorship and strategic advice given by them. In a short period of time, Timios has managed to become a brand known in the market for its honest, healthy products that are great for the snacking needs of children. The funding would be primarily used for development of our range within the Timios brand and for expansion into other geographies. This investment will surely provide us with the strategic support required to grow further," Aswani Chaitanya, founder, Timios said in a statement.