Delhi-based cold-pressed juice maker MyGreens has acquired Food Ideas Pvt. Ltd-backed JusDivine in an all-equity deal. The deal value is about Rs 20 crore ($3 million), a person close to the development told VCCircle.
This acquisition will help MyGreens foray into the Mumbai market to take on rivals Raw Pressery, which is backed by venture capital firm Sequoia Capital, and Fresh Food Concepts Pvt Ltd-owned Juice Up, among others. The merged entity will operate under the MyGreens brand.
The Economic Times had first reported the acquisition, but pegged the deal value around Rs 8-10 crore.
The acquisition provides the company with JusDivine’s manufacturing facility and a running plant with all the manpower and logistics networks built in, MyGreens co-founder Anurag Mishra had told the business daily.
The transaction will also help MyGreens to get access to the 30-40 premium retail, and food and beverages stores, which were part of JusDivine’s distribution network. Mishra, however, did not divulge the financial details of the transaction.
MyGreens was founded in 2016 by Mishra and Rohan Gupta. Mishra is an IIT Delhi and IIM Calcutta alumnus and was earlier associated with the Boston Consulting Group and Monitor Deloitte, according to the company website. Gupta is a management graduate from Lancaster University, UK, and is a serial entrepreneur.
The acquisition is expected to help the company achieve a sales volume of 5,000 bottles per day from the current 500-1,000 at present, said Mishra. The company also aims to launch a range of more affordable natural beverages for the mass market.
JusDivine was launched in 2014 by former Goldman Sachs employee Vishal Jain. It sells juices under two brands – JusDivine and JusUp.
VCCircle had reported in November last year that JusDivine was in discussions with a couple of venture capital firms to raise its first round of external funding.
MyGreens and JusDivine are among a handful of startups that cater to the growing demand for healthier options in the ready-to-drink beverage segment. The segment is currently dominated by carbonated drinks.
Within the juice category, cold-pressed juices are capturing the consumers’ imagination as these are perceived to be healthier than other packaged juices. Investors are, therefore, betting big in this space.
In February 2016, Rakyan Beverages Pvt Ltd, which sells fresh cold-pressed juices under the RAW Pressery brand, raised Rs 30.8 crore ($4.5 million) in a Series B round of funding from Saama Capital, DSG Consumer Partners and existing investor Sequoia Capital.
Recently, Fresh Food Concepts Pvt Ltd, which sells cold-pressed juices under the Juice Up brand, secured Rs 13.5 crore ($2 million) in a pre-series A round led by angel investors Siddhartha Gupta and Ashvin Chadha.
*This article has been updated to include the estimated deal value.
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