Faraway Foods Pvt. Ltd, a Mumbai-based startup that sells healthful snacks for children under The Mumum Co. brand, has raised angel funds worth Rs 3.4 crore ($500,000) from a clutch of wealthy individuals.
The round was led by Nisa Godrej, executive chairman of Godrej Consumer Products Ltd, and Siddharth Parekh and Sumeet Nindrajog, co-founders of private equity firm Paragon Partners, said a press statement.
The company, which sells snacks such as roasted grain puffs, is going to use the capital mainly for expansion in key metros and Tier-I cities. Currently, the products are available at over 100 stores across Mumbai, Bengaluru and Pune. A part of the capital will be also used to launch more varieties in healthful snacks category.
The company was launched in September last year by Farah Nathani Menzies and Shreya Lamba. “When we became parents, we looked around for healthful, real, yet fun food to feed our children. We soon realised that many parents were in the same boat, but with very few trustworthy options,” Lamba said on the inspiration behind The Mumum Co.
The Mumum Co. snacks are also available on online channels such as Amazon and FirstCry. The brand is set to expand to over eight more cities by the end of the year.
“We strongly believe The Mumum Co. is well-positioned to capture a significant share of the large, untapped healthful snacking market for kids in India,” said Parekh of Paragon Partners.
The Mumum Co. competes with the likes of Timios brand, which raised an undisclosed amount from the seed fund of packaged food company MTR Foods Pvt. Ltd in May this year.
Several deals have been reported in the healthful snacks category in the recent past.
Last month, Wholesome Habits Pvt. Ltd, which sells healthful snack bars under the brand name Eat Anytime, raised $500,000 (Rs 3.43 crore) in seed funds from early-stage investment firm Sprout Venture Partners and a few wealthy individuals.
Homegrown private equity firm Rabo Equity Advisors also invested money in nutrition bar maker Naturell India.
Last year, Mumbai-based LightSaber Food Ventures Pvt. Ltd, which sells healthful snacks through online and offline channels under the Snackible brand, had raised angel funds worth $175,000.