Food ingredients manufacturing company Veeba Foods raises Series B funding of $6mn led by Saama Capital and Verlinvest
Veeba Foods, the speciality food ingredients manufacturing company today raised $6 million in Series B funding. This is the company’s third round of funding. In 2013, it had raised a seed round from Yukti and DSG Consumer Partners. Series A funding led by DSG Consumer Partners and Saama Capital was raised in 2015.
The team will be using these funds to strengthen its market position and build its product portfolio and distribution for the retail market.
Founded in 2013 by Viraj Bahl, Veeba manufactures sauces, dressings, and preserves. The company distributes its products in the Horeca segment and is available across retail stories in the country. The company has partnered with various QSR brands and coffee chains, some of which include KFC, Starbucks, Pizza Hut, Dominos, and Taco Bell.
It also claims to have a portfolio of over 60 unique products. Viraj adds that in the last three years, they have worked in partnership with different clients to build an innovation-centric product development process. This helped them launch the brand in the retail market in 2015.
Rajiv Wahi, former President, Cadbury Asia also joined Veeba’s board of directors. Viraj adds that Rajiv’s input, insights, and guidance will help Veeba navigate the next phase of its journey.
Speaking of this investment, Ash Lilani, Managing Partner, Saama Capital said that Viraj and his team have built a solid business based on innovation and quality and have created world class products. And since their initial investment Veeba has been growing.
Adding to this, Deepak Shahdadpuri, Managing Director, DSG Consumer Partners said in three years, Viraj and his team have built one of the fastest growing food services business in the country.
“Veeba is now well placed to consolidate the position in the institutional market and continue to build upon its foundation in the retail segment,” said Deepak in a press release by the company.
Also, this investment is believed to be a rare venture stage investment for Verlinvest. Nicholas Cator, Executive Director, Verlinvest, claims that they typically look for larger deals ranging between $50 to $100 million.
Even after pumping in funds in the foodtech space, since the end of last year, food businesses have been looked at with a wary eye by the investment community. Several foodtech and online food businesses like SpoonJoy, Eatlo, Dazo, and TinyOwl saw rough times.
Even businesses like Yummade, which aren’t specifically in the foodtech and online food delivery category, were viewed warily by investors. However, this year, Swiggy, FreshMenu, B9 Beverages, and WIMWI were some of the food startups that saw investment.