Woknstove Foodworks Pvt. Ltd, which operates quick-service snacks startup Samosa Singh, has raised $2.7 million (approximately Rs 19.25 crore at current exchange rates) in its Series A funding led by the Delhi-based early-stage venture capital firm She Capital.
Other investors that took part in the round include Equanimity Investments, the Japan-based AET Fund, AL Trust, and existing investor Fireside Ventures, Samosa Singh said in a statement.
The Bengaluru-based company said it will use the funds to scale up its operations, increase its production capabilities and expand to several cities. The firm also aims to establish a presence to over 100 cloud kitchens by the end of this year
Nidhi Singh, co-founder and chief operating officer, said the brand was looking to position itself in the “underpenetrated and fragmented” gourmet snack market.
Separately, She Capital founding partner Anisha Singh said the women-focussed VC firm was confident in its investment in Samosa Singh because of the management team, and the research and consumer insights studies conducted by the company.
“We are excited to partner with them as we make Samosa Singh a household name,” Anisha said.
Samosa Singh was co-founded by Nidhi Singh and Shikhar Veer Singh in 2016. The company says its research has led to the production of samosas that are 56% lower in fat than their traditionally prepared counterparts. It claims to have sold over 20 million units of its products.
The firm, which currently has a presence in Bengaluru and Hyderabad, says it is planning to establish a presence in other parts of South India as well. It has also partnered with brands such as INOX, PVR Cinemas and Café Coffee Day, and operates a flagship outlet at Bengaluru’s international airport.
Deals in the QSR segment
The quick-service restaurant and delivery business has seen a steady uptick in investor attention in recent months, with brands moving to occupy niche spaces and consumers spending more of their discretionary income on such products.
In November last year, non-alcoholic beer maker Coolberg Beverages Pvt. Ltd raised $3.5 million (around Rs 25 crore) in a Series A funding round led by Singapore-based family office RB Investments and existing investor India Quotient.
Prior to that, in October, whole foods and dairy products startup Credence Whole Foods Pvt. Ltd raised over $1 million (Rs 7.08 crore) from IndoCan Honey Pvt. Ltd, which focuses on premium honey.
In September, US-based Tiger Global Management led a $23 million (around Rs 163.7 crore) Series B funding round in Wow! Momo Foods Pvt. Ltd at a valuation of Rs 860 crore.