True Elements, a clean label health foods brand operated by HW Wellness Solutions Pvt Ltd, has raised Rs 10 crore ($1.36 million) in funding.
Pune-based True Elements has raised this capital from Maharashtra State Social Venture Fund (MSSVF), managed by Sidbi Venture Capital, which is a wholly owned subsidiary of Small Industries Development Bank of India.
According to SIDBI VC’s website, MSSVF was established in September 2015 and is registered with the Securities and Exchange Board of India as a Category-I Alternative Investment Fund.
The vehicle has a tenure of seven years, and it marked its first close in January 2016. Its primary focus includes identifying and investing in companies whose business models are profitable, scalable, and provide social benefits.
True Elements was set up by Puru Gupta and Sreejith Moolayil. It markets products including muesli, seed mixes, oats, and oatmeal. Women make up 75% of the workforce at its factory in Pune.
In a statement, Gupta said the company will now focus on maintaining a consistent growth in its Ebitda (earnings before interest, taxes, depreciation and amortisation) margins while scaling itself.
The company says it currently generates sales from its own website, marketplaces, and more than 6,000 general stores across the country. According to VCCEdge, it generated net sales of Rs 8.85 crore and net loss of Rs 2.34 crore for 2018-19 financial year .
In January 2018, the firm raised Rs 5 crore (around $788,500) in a pre-Series A funding round led by the RP-Sanjiv Goenka Group.