The financing is expected to fuel growth towards establishing a stronger brand platform and capturing an increased share of the organized snack market in India.
In what furthers the wave of consumer brands increasingly finding favour with India's venture capital ecosystem, Kishlay Foods which manufactures snacks, chips and biscuits has raised $15 million (Rs 100 crore) in its latest round of funding. The investment round was led by growth equity investment firm Norwest Venture Partners (NVP) and D.K. Surana, promoter of Intensive Softshare Services (Intensive).
The investment which also features a prominent secondary share sale component, will be used to primarily buyout the existing business partners, as also to expand distribution in North and East India markets, launch additional product lines, and enhance the management team.
“Kishlay foods is well positioned to penetrate deeper in its home markets and expand further in new geographies and products. Kishlay is excited to partner with NVP and Intensive and will benefit greatly from the support of external investors as it looks ahead on to its next phase of growth,” said Sandeep Bajaj, CEO of Kishlay Foods.
Founded in 2003, the Guwahati based firm is a significant regional player focused on the snacks market and currently has a dominant presence in North East India selling products under the brand names of “Non-Stop”, “Kishlay” and “Mamooz”. The product basket comprises extruded snacks, potato chips, biscuits and cookies.
The financing is expected to fuel growth towards establishing a stronger brand platform and capturing an increased share of the organized snack market in India. Mumbai based Intensive is also the sole syndicator and advisor to the deal.
“As part of Norwest’s investment focus on food tech, packaged food and food services, we have been tracking Kishlay Foods for a long time, and have been extremely impressed with the quality of the team, the company’s rapid growth and strategic execution,” said Sumer Juneja, Director at NVP India. “The large organized snacks market in India is estimated to be $8 billion and is growing at 20% CAGR. With its unique products and growing distribution network, Kishlay is well positioned to capture this opportunity,” Juneja added.