This marks the seventh investment from the Aavishkaar India Fund VI, a $150-million vehicle investing across impact sectors such as financial inclusion, sustainable agriculture, climate, consumer and healthcare in India.
The Series B round also saw participation from existing investors Rukam Capital, Roots Ventures and DSG Consumer, as per a statement from the company. Go Desi said it will use the funding fund for business expansion geographically, deepen stock-keeping units’ presence, and build and strengthen capacity.
The company is a regional-focussed treats brand for products for the Indian palate. Its best seller products are ice lollies called Desi Popz, selling on online marketplaces and quick-commerce platforms as well as general trade stores.
The startup was founded in 2018 by the brother-sister duo, Vinay and Raksha Kothari.
Founder Vinay Kothari told ET that the brand is currently doing a business of Rs 3.5 crore in monthly revenue. It aims to get this figure to about Rs 9 crore over the next 18 months, he added.
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In the past the company had raised Rs 31 crore in 2022 from Rukam Capital, Roots Ventures and DSG Consumer.“The company has created a strong brand name and a robust distribution engine in a short time. We believe the opportunity is very significant and the Go Desi team has all the right ingredients to capture the dynamic confectionery market in India,” Divya Gupta, investment director, Aavishkaar Capital, said.
As per the statement, the confectionery market size in India is over $17 billion. “While the western segment is highly organised by established global multinationals, the Indian segment, which accounts for $10 billion of this market, is 90% unorganized, sold in loose, unbranded formats, and suffers from low hygiene and quality standards,” it added.
The brand has sold over 15 million units and its products are available in more than 40,000 stores across the country.