[Funding alert] FMCG startup Pipal Tree Beverages raises funding from ITI Growth Opportunities Fund
Mumbai and Pune-based Pipal Tree Beverages, a new-age FMCG startup into manufacturing and marketing of dairy-based functional beverages, has raised funding from ITI Growth Opportunities Fund.
The startup will use the funding amount for marketing, new product development, and retail expansion to other key markets like Delhi, Bangalore, Chennai and Hyderabad.
Started in 2018 by Satish Negi and Jasmeet Khanna, Pipal Tree Beverages aims to address lifestyle health issues through smart and convenient food products. The company’s first flagship product was launched last year under the brand name BREKKIE - Breakfast shake.
“We will be offering a range of functional beverages, which are a blend of convenience, health, and taste,” said Satish Negi, Founder and Director, Pipal Tree Beverages.
A functional beverage is a healthy drink consumed by health conscious people for enhancing body performance for day-to-day activities.
The startup also plans to list its products in modern retail chains like Godrej Nature Basket, Food Hall, Wellness Forever, and Big Basket.
ITI Growth Opportunities Fund, an early-stage venture capital fund, was launched last year by Investment Trust of India (ITI) group. Pipal Tree Beverages will be its fourth investment and second within the FMCG sector; it also backed Evolve Snacks recently. With the fresh funding in April, New Delhi-based Evolve Snacks had announced its plans to enter the retail space. Currently, the company sells products through its online portal. Going forward, it will partner with retail brand chains and traditional FMCG distributors.
Speaking on the investment, Mohit Gulati from Investment Trust of India (ITI) said,
“Consumer trend is moving towards convenient and healthy food choices. Unfortunately, there are not enough options available in the market, especially when it comes to functional beverages, and hence we are excited to partner with Pipal Tree Beverages who are offering a fusion of health and taste to urban Indian consumers.”
The overall beverage market in India is pegged at Rs 43,034 crore, and is likely to touch Rs 130,000 crore by 2030, according to a report published by Euromonitor. Of this, the health drink market is Rs 10,680 crore, and is expected to reach Rs 15,067 crore by 2023.
On Monday, Drums Food International, the parent company of flavoured and greek yoghurt brand Epigamia, announced that actor Deepika Padukone had invested an undisclosed amount in the company, and would act as a partner and strategic advisor to the FMCG brand. This investment was a part of Epigamia’s recent Rs 182 crore Series C funding round.