L Catterton leads $40m series C of Indian D2C snacking startup

Farmley has raised US$40 million in series C funding led by L Catterton, with DSG Consumer Partners also participating.

The Delhi NCR-based startup will use the funds to grow in India’s dried fruits and nuts market.

Founded in 2017 by Abhishek Agarwal and Akash Sharma, Farmley sells snacks like roasted makhanas and flavored cashews.

The company has now raised a total of US$54.7 million and is backed by BC Jindal Group, Omnivore, and Alkemi Partners.

🔗 Source: Inc42

🧠 Food for thought

1️⃣ Dried fruits and nuts emerge as the power segment in India’s health snacking revolution

The dried fruits and nuts category has become a strategic cornerstone of India’s rapidly expanding healthy snacks market, representing over 36.84% of market revenue in 2023 1.

This specific segment is projected to grow at 14% annually to reach $8.5 billion by 2031, significantly outpacing the broader healthy snacks market’s 5-8% annual growth 2.

Farmley’s focused investment in this category aligns with shifting consumer preferences toward minimally processed foods with recognizable ingredients, as ‘clean label’ products continue gaining popularity among health-conscious Indian consumers 3.

The timing of this funding round coincides with the emergence of new distribution channels, particularly through quick commerce platforms like Blinkit, Zepto, and Instamart, which have become crucial for impulse purchases of premium healthy snacks 4.

With its farm-to-palm model emphasizing quality sourcing and sustainable practices, Farmley appears positioned to capitalize on this segment’s growth trajectory while maintaining profitability 2.

2️⃣ Profitability amid growth distinguishes Farmley in India’s competitive D2C landscape

Farmley has achieved an impressive 55% annual revenue growth while maintaining profitability, reaching approximately $41 million in FY25 revenue 2.

This performance stands in contrast to many Indian D2C startups that have prioritized growth over profitability, often leading to cash flow challenges and reduced valuations in later funding rounds 5.

The company’s success likely stems from its strategic focus on the dried fruits and nuts segment, which typically offers higher margins than many processed snack categories due to simpler production requirements and longer shelf life 4.