Wingreens Farms raised $17 million from Investcorp to expand into D2C market
Wingreens Farms has raised $17 million in Series C led by Investcorp where Omidyar Network India also participated.
Wingreens sells a wide variety of packaged food products. The startup will use the freshly raised funds to target millennials with their new D2C offering. Wingreens focused on women’s empowerment, addressing a market opportunity in the healthy products segment estimated by the company to be $1 billion in five years. It has an omni-channel distribution strategy and an offline retail presence in over 200 Indian cities.
Wingreens Farms, a D2C brand in the food and beverage sector, will use the capital for strategic acquisitions.
Packaged food retailer Wingreens Farms has raised Rs 124 crore ($17 million) in a round led by mid-market private equity investor Investcorp. Social impact-focused investment firm Omidyar Network India also participated in the round.
Investcorp in India has made bets on consumption-led sectors and real estate, backing companies like youth-focused brand Bewakoof, online fish and meat retailer FreshToHome, and managed rental accommodation provider Zolo, among others.
Wingreens had last raised Rs 125 crore in 2019 in a Series B round of funding led by responsAbility Investments AG and Sequoia India. According to media reports, the company has been evaluating acquiring brands that make fresh and ethically produced food and beverages to grow its offerings.
Founded in 2011 by Anju C Srivastava and Arjun Srivastava, Wingreens has a presence across fast-growing categories including healthy snacks, sauces and spreads, spice mixes, speciality bakery, breakfast cereals, non-dairy milk, protein shakes, and fruit juices through its acquisition of RAW Pressery completed earlier this year.
The funding was advised by Veda Corporate Advisors.
The brand has an omnichannel distribution strategy and recently launched a direct-to-consumer website for its offerings. Apart from this, the brand has a retail footprint across 200 cities in India.
“We are delighted to welcome Investcorp and Omidyar Network India to the Wingreens family. Their valuable experience and resources will empower us to onboard many more newage food and beverage brands on the WingreensWorld.com platform with an online and offline presence,” said Founder and Managing Director of Wingreens, Anju Srivastava, in a statement.
According to a report by Avendus, the online market for D2C brands in India in the food and beverage segment is expected to grow to $15 billion by 2025. The margins in the segment range from 45 percent to 55 percent, said the report. The report also states that the potential exit for food and beverage D2C brands has mainly been through sales to larger incumbents in the sector.
With the addition of multiple brands, Wingreens can reach out to a larger consumer base and diversify its portfolio.
Wingreens Farms has raised INR 124 Cr ($17 Mn) in a Series C funding round led by Investcorp. Omidyar Network India also participated in the funding round.
Founded in 2011 by Anju Srivastava and Arun Srivastava, Wingreens sells all kinds of packaged food products, including healthy snacks, sauces and spreads, spice mixes ,specialty bakery, breakfast cereals, non-dairy milk, protein shakes and a wide assortment of organic products.
In March this year, the startup had acquired organic juice startup Raw Pressery at one-fifth of its previous market valuation in a distress sale. In 2019, the Gurugram-based food and beverage maker had raised $17 Mn in Series B funding from Sequoia Capital and responsAbility.
The startup has an omnichannel distribution strategy with an offline retail footprint in over 200 cities in the country. It also launched a new direct-to-consumer (D2C) website called theWingreensWorld.com, which features products from recently-acquired Raw Pressery.
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“We are delighted to welcome Investcorp and Omidyar Network India to the Wingreens family. Their valuable experience and resources will empower us to onboard many more new age food and beverage brands on theWingreensWorld.com platform with an online and offline presence, ” said Anju Srivastava, founder and managing director of the startup.
“We are passionate about building a new age food and beverage company that continues to scale its social impact on the back end while building exciting brands that resonate with the emerging millennial consumer on the front end,” she added.
Many companies are looking to adapt to the changing eating habits of millennial customers. According to a study conducted by Euromonitor, 44% of urban millennials skipped breakfast and delayed meals. Consumers also took to increased consumption of fruits, vegetables and whole grains: an emerging post-Covid trend.