Eat Better, a direct-to-consumer snacking brand, has raised 17 crore rupees (US$2 million) in a pre-series A funding round.

The investment was co-led by Prath Ventures and Spring Marketing Capital, with participation from existing investors.

The Jaipur-based brand plans to expand its healthy snack lineup and grow on quick commerce platforms.

Eat Better specializes in healthy snacks, including dry fruit ladoos, namkeens, and various nuts and seeds.

🔗 Source: Inc42

🧠 Food for thought

1️⃣ India’s healthy snacking market shows rapid growth amid changing consumer preferences

Eat Better’s fundraising success reflects the broader expansion of India’s healthy snacking market, which is projected to grow from $2.67 billion in 2024 to $4.95 billion by 2032, at a CAGR of 8.03% 1.

The company’s impressive 3X revenue jump to INR 14.47 Cr in FY24 mirrors this industry-wide growth trajectory, suggesting they’re successfully capturing the rising demand for healthier alternatives.

This growth is being fueled by increasing health consciousness, urbanization, and higher disposable incomes across India, all factors creating fertile ground for D2C healthy snack brands 2.

The fruit, nuts, and seeds segment, which includes Eat Better’s core offerings, already accounted for 36.84% of the healthy snacks market in 2023, positioning the company in a high-demand category 3.

Industry data shows consumers are increasingly seeking convenient, nutritious options that avoid artificial ingredients, creating opportunities for brands that can deliver both taste and health benefits 4.

2️⃣ Profitability remains challenging despite growth in healthy food startups

While Eat Better has managed to trim its losses by 46% (to INR 63 lakh) while growing revenue, this highlights the difficult path to profitability that many food startups face 5.

Eat Better’s focus on fulfilling 2 lakh monthly orders suggests they’re building the volume needed for sustainable operations, a critical factor in achieving economies of scale in the food business.

The company’s aggressive expansion after Shark Tank exposure must be balanced against the realities of operating margins in packaged food, where distribution costs and marketing expenses can quickly erode profits.