India-based startup Troovy has raised 20 crore rupee (US$2.3 million) in a pre-series A funding round.

The investment was led by Fireside Ventures, with contributions from Sharrp Ventures, Spring Marketing Capital, and Veltis Capital.

Founded in 2021 by Aditya Mukherjee and Mansi Baranwal, Troovy specializes in nutritious snacks for children, including ragi and makhana chips, milk mixes, sauces, spreads, and protein pasta.

Troovy plans to use the funding to expand in the quick commerce segment, which it sees as a key channel for grocery sales. This follows a 2023 seed funding round of 10.5 crore rupee (US$1.24 million), led by Sharrp Ventures and Earlyspring.

🔗 Source: Inc42

🧠 Food for thought

1️⃣ The kids’ nutrition segment offers strategic advantages in India’s booming health foods market

Troovy’s focus on children’s snacking taps into one of the most promising segments of India’s rapidly expanding health foods market, projected to reach $30 billion by 2026.

The health-conscious consumer base in India is expected to grow from 108 million to 176 million by 2026, with parents increasingly prioritizing nutritional value for their children 1.

This shift is evident in the success of similar brands like Slurrp Farm, which has built a loyal following by focusing specifically on millet-based foods for children without artificial additives 2.

While the overall healthy snacks segment represents only about 2% of India’s massive ₹40,900 crore snack food market, brands that can overcome taste and price barriers while appealing to children have substantial growth potential 3.

The pandemic accelerated this trend, with brands like Happilo and True Elements reporting 4x and 3x revenue growth respectively post-COVID as parents became more conscious about their children’s immunity and nutrition 3.

2️⃣ Quick commerce emerges as a critical channel for healthy snack brands

Troovy’s strategic focus on quick commerce aligns with changing consumer purchasing patterns for grocery items, particularly for urban parents seeking convenience.

Major health food brands have reported high customer retention through quick commerce platforms, with 73% of Indians now prioritizing healthier snack options despite higher costs 4.

The rapid delivery model is particularly valuable for parents making last-minute purchasing decisions for children’s snacks, creating an opportunity for brands to capture impulse purchases with healthier alternatives.