Business
Scandalous Foods Raises Rs 1.6 Crore in Ongoing Pre-Seed Funding Round to Expand its Production
- Investors include Anthill Angel Fund, EvolveX, Value360 and Sapphireink Ventures
- Among angel investors are Wow! Momo founder Sagar Daryani, Vikas Aggarwal, Co-founder of We Founder Circle & ex-IndiaMart & Celebrity Chef Harpal Singh Sokhi
Mumbai, 8th December, 2023: Scandalous Foods, a one-stop shop aiming to create a category of post meal impulse buying consumption of Indian sweets for restaurant & catering industry has raised Rs 1.6 Crore in the ongoing pre-seed funding round, backed by Anthill Angel Fund, EvolveX, Value360 and Sapphireink Ventures. Angel investors in the funding round include Wow! Momo founder Sagar Daryani, Kamnaa Aggrawal, Vikas Aggarwal, Co-founder of We Founder Circle & ex-IndiaMart and Celebrity Chef Harpal Singh Sokhi.
The company would spend a significant amount to expand its production unit in Nasik and automate production. Alongside, it will use the funding to increase its reach from 250 touchpoints to 2000 touchpoints in a year. The plan also comprises expanding institutional sales beyond five cities and doubling down operations in Mumbai, Thane and Nasik. The company also plans to spend on product development to come up with more Indian desserts that have a shelf life and mouth-watering taste. As a B2B company, Scandalous Foods plans to tap the HoReCa industry.
With its traditional Indian sweets, Scandalous Foods has tapped an opportunity worth $20 Billion in the post-meal impulse buying sector for mithais. Taking this forward, the brand has also brought mithais into a single-serve format at restaurants and hotels. It plans to move towards ethnic bars, cookies, cupcakes and finally mithai sachets.
Sanket S, CEO & CPO, Scandalous Foods, said, “We have embarked on an exciting journey to revolutionize the culinary landscape. With a fresh infusion of funds, we will expand our production facility and embrace automation for efficiency. Our commitment to innovation is showcased in new product development, catering to diverse tastes. We’re planning to break new ground by entering wedding and corporate catering channels, extending our reach to smaller QSRs. Fueled by B2B2C aspirations, we’re piloting a ‘wholesale sweet shop’ under our brand. This funding empowers us to sweeten moments, one delectable venture at a time.”
In its one year of operations, Scandalous Foods has achieved a remarkable milestone by selling nearly 14 lakh pieces of sweets. Challenging the misconception that frozen equals compromised taste, Scandalous Foods emphasizes that when executed correctly, frozen food retains an impressive 97% of freshness, texture, and taste, offering a safer alternative. Serving the HoReCa sector, the brand addresses the perennial challenges of wastage and pilferage by providing sweets with a generous six-month shelf life.
Recognizing the underexplored potential of sweets in restaurant menus due to the need for skilled labour, Scandalous Foods offers a solution that seamlessly integrates these treats without additional capital and operational expenditures. Its sweets, with zero wastage, simply thaw and serve and hand over to the customer. The competitive pricing allows restaurants to mark up by 3x, ensuring handsome gross margins. The success story continues with consistent month-on-month growth, with a remarkable 10x increase in customers in monthly orders over three quarters. Scandalous Foods is not just redefining the sweet experience but reshaping the dynamics of the culinary industry.