Bengaluru-based food company Lo! Foods has raised US$3.5 million in a series B funding round.

The investment was led by Rainmatter Health, an initiative by Zerodha, and Singapore-based Capital Code, with participation from Mount Judy Ventures, Ice.VC, and KPB Ventures, along with existing family offices.

The funding will strengthen infrastructure, tech, and marketing for Protein Chef, its protein-focused brand launched in 2023.

Protein Chef, which sells protein-rich atta, snacks, and bread, has seen 4 times growth and gets 65% of its sales via Blinkit, Zepto, and Swiggy Instamart.

Lo! Foods, founded in 2019, also runs Keto Smart, DiabeSmart (soon rebranded to Sugar Smart), and GlutenSmart, with plans to enter offline retail in Bengaluru.

The company previously raised US$1 million in pre-series A from Chona Family Office and US$550,000 in seed funding from angel investors.

🔗 Source: YourStory

🧠 Food for thought

1️⃣ India’s protein focus aligns with global functional food growth trajectory

Lo! Foods’ emphasis on protein products taps into a massive global opportunity within the functional foods sector, projected to reach USD 586.1 billion by 2030 with an 8.5% compound annual growth rate 1.

The company’s protein-focused strategy specifically addresses a critical nutritional gap in the Indian market, where campaigns have highlighted protein deficiency as a significant health challenge 2.

This approach aligns with the global protein-fortified food products market, valued at USD 66.8 billion in 2023 and expected to reach USD 101.62 billion by 2030, growing at 6.2% annually 2.

The rapid expansion of Lo! Foods’ Protein Chef brand (growing 4x in one year) demonstrates how effectively localized protein products can gain traction when they address specific regional dietary needs while following global nutritional trends.

2️⃣ Quick commerce revolutionizing functional food discovery and adoption

Lo! Foods’ revelation that 65% of its business comes from quick commerce platforms illustrates a fundamental shift in how functional food brands are building customer acquisition channels.

The company’s experience confirms that 10-minute delivery significantly reduces the consumer friction that typically hampers trial rates for new health-focused products, creating a new discovery mechanism for functional foods.