Aavishkaar, the Impact Fund Advisory Firm invested Rs 35 crore in Kottaram Agro Foods, a Bengaluru-based packaged foods startup, as per reports.
The fund advisory fund is a part of the Aavishkaar-Intellecap Group and has an Aavishkar Bharat Fund. The products are marketed under the brand ‘Soulfull’.
About the startup
In 2011, Kottaram Agro Foods was founded to bring back the goodness of India’s ancient grains in an innovative form that would be attractive to the consumers.
The company is a DIPP (Department of Industrial Policy & Promotion)-recognised startup. It works with State governments and leading research institutions to promote smart foods which are good for the consumers but also help the farmers. The products are sustainable in nature, thus they do not harm the environment.
Soulfull brings traditional grains such as millets back to the consumer in modern avatars. The company processes ragi (finger millet) into breakfast and snack options such as flakes, ragi bites, muesli and ready-to-cook oat-millet meals.
What do the founders and the investors say?
Speaking about the company’s first institutional investment, Prashant Parameswaran, MD and CEO of Kottaram Agro Foods said,
“There are immense opportunities in the packaged foods industry in India, which is growing rapidly at 20-25 percent.”
The partnership with Aavishkaar will aid Soulfull to strengthen its product portfolio, accelerate marketing and expand its distribution reach to over 50,000 retail outlets in the coming three years, Parameswaram explained.
“The tangential outcome of Soulfull products is to increase in demand of ancient grains that will address problems of marginal Indian farmers and reduce environmental stresses on land since these grains can grow in arid areas, are pest-resistant and need minimal fertilizers,”
said Vineet Rai, MD of Aavishkaar.
In November 2017, Aavishkaar had raised $95 million in the first close of its $200-million ‘Aavishkaar Bharat Fund’; Kottaram is the fund’s second investment. The fund targets early-to-mid stage investment opportunities in healthcare, agriculture, clean technology, education and financial inclusion sectors.
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