One Suite Technologies Pvt. Limited, which runs business-to-business (B2B) food processing startup Suite42, on Tuesday said it has raised seed funding of $4.3 million (around Rs 33 crore) co-led by Omnivore and Orios Venture Partners.
The round also saw participation from other investors including Titan Capital, All In Capital and PointOne Capital, with angel investor like Sujeet Kumar (Co-founder at Udaan) and others.
The Bengaluru-based firm plans to use the fresh capital to onboard more talents, roll out raw material financing and piloting exports.
Founded by Rahul Ratan, Ramakrishna Cheruku, Chethan S and Shriram S this year, Suite42 offers contract manufacturing solutions for food processing, serving B2B clients across FMCG, agribusiness and grocery industries. The startup plans to work with B2B clients across e-commerce, D2Cs and FMCG brands in the next one and half year.
“Our mission is to empower food manufacturers in India by leveraging technology and building efficient and standardized processes. Consequently, brands and consumers will have access to premium products and ingredients at affordable prices,” said Ratan, Co-Founder and chief executive officer of Suite42.
“The sector is highly unorganized with deep inefficiencies. Less than 5% of India's agricultural output is processed, preventing realization of profits across the value chains,” said Jinesh Shah, Managing Partner of Omnivore.
“Suite42 is building a platform to digitize the back end of a food brand from procurement to packaging. The team is targeting a large total addressable market and manages the entire supply chain for the brand,” said Vinit Bhansali, Senior Vice President at Orios Venture Partners.
Founded by Jinesh Shah and Mark Kahn in 2010, Omnivore has over the past decade backed over 35 startups. Omnivore currently manages Rs 936 crore across two funds. It marked the final close of its second fund at $97 million (Rs 679 crore), overshooting the initial target of $75 million in April 2019.
Set up by Rehan Yar Khan in 2013, Orios raised its maiden fund in August 2014, securing about Rs 300 crore (about $50 million). The first fund had invested in over 20 startups, including online lingerie brand Pretty Secrets, beauty appointment booking app Ziffi, on-demand home services company TaskBob, internet-first daily affordable meal delivery company Yumist and budget accommodation provider Zo Rooms.