Indian healthy snacking startup Phab bags $2m seed funding

Phab, a direct-to-consumer healthy snacking brand, has raised US$2 million in a seed funding round led by OTP Ventures, with additional investors including Capri Global, Sim&San law firm, and several angel investors.

Founded in 2018 by Ankit and Gayatri Chona, the brand offers protein bars and healthy milkshakes, selling products on platforms like Amazon, Flipkart, Zepto, and Blinkit.

Phab has sold over 2 million units to date.

The company plans to use the funds to expand its team and increase its presence both online and offline.

Financial filings show a 12% drop in operating revenue to 5 crore rupee (US$585,585) in FY24. However, its net loss decreased by nearly 3%, from 7 crore rupee (US$819,819) in FY23 to 6.8 crore rupee (US$796,395) in FY24.

🔗 Source: Inc42

🧠 Food for thought

1️⃣ India’s healthy snacking market shows explosive growth amid changing consumer habits

Phab’s new funding comes during a significant market expansion in India’s healthy snacks sector, which has doubled to $8 billion in just five years 1.

This surge reflects a fundamental shift in Indian consumption patterns that began in the 1990s, evolving from traditional meals to packaged foods and now to healthier alternatives 2.

With over 800 million Google search results for “healthy snacks” and approximately 3,000 daily searches in India alone, consumer interest is clearly substantial and growing 1.

The Asia Pacific healthy snacks market is projected to grow at a CAGR of 5.41% through 2025, driven by increasing disposable income and growing health consciousness 3.

Despite this growth, healthy snacks still represent only about 2% of India’s overall snack market (valued at $5.8 billion), indicating significant headroom for expansion 2.

Phab’s ambitious target of achieving ₹100 crore in revenue by 2025 aligns with these broader market growth trajectories, though the recent 12% revenue decline highlights the challenges of scaling in this competitive space 4.

2️⃣ D2C healthy snack brands face unique scaling challenges despite market demand

Despite strong consumer interest, India’s fragmented retail market creates significant distribution hurdles for health food companies like Phab, often requiring substantial advertising spend to build meaningful reach 1.