Food-Tech Startup and D2C Brand, Anveshan, Raises 1.12 Crore Pre-Seed Funding from Titan Capital

• Aims to provide high-quality, natural and traditionally processed food products manufactured at source (rural areas)
• Focusing on source identification and traceability solution
• Funds will be used to expand business and create tech-enabled supply chain 

Foodtech start-up, Anveshan has raised Rs. 1.12 crore in the pre-seed funding round led by Titan Capital. With a fresh influx of capital, the company will focus on expanding its supply chain and operations across India. The start-up creates food micro-Entrepreneurs in villages across India that make these food products using traditional practices while ensuring quality control through traceability. This model ensures the best quality food product for the customers along with social and economic upliftment of the Indian farmers. 

With the vision to provide best quality and healthy food products, a significant pie of the investment will also be used for food research and the development of technical solutions and devices that can track the food quality.

Co-founded in late 2019, by three young and energetic IIT Guwahati graduates, Aayushi Khandelwal, Akhil Kansal and Kuldeep Parewa, Anveshan plans to tap the growing market for local and Indian origin foods by providing high-quality natural and eco-friendly products. Anveshan is an attempt to solve the problem of lack of transparency and quality control in food products to ensure best products for the consumers. The foodtech company also wants to change how food is perceived today by making people aware of the manufacturing process and providing them super nutritious and tasty food products.

Talking about the investment and the support from the Titan Capital, Aayushi Khandelwal, Co-founder, Anveshan said, “We are elated to receive this initial support and investors’ belief in our vision to replace all the unhealthy ingredients in the kitchen that have long-term health ailments with natural and quality food products. We want our customers to take pride while buying Anveshan food products as not only are they contributing to their own health but also impacting the lives of Indian farmers.”

“Also, with a trend towards healthier lifestyle, the market’s potential in India itself is huge and we envision expanding globally over time.” she further added.

Pleased to share, Akhil Kansal, Co-founder, Anveshan, said, “Due to misleading advertisements and false marketing of food products, consumers have lost the feeling of trust in food brands. Customers are being deceived by such campaigns and they blindly trust what is written on the label. We want to be that brand that provides purest and most natural kind of food with a proof of quality through our traceability solution."

Kuldeep Parewa, Co-founder, Anveshan, stated, "Inspite of putting in the greatest effort in the food-supply chain, our farmers gets the least monetary gains out of it. Our unique model of creating decentralised food-processing units, enables us to empower Indian farmers and the village youth. We aim to create thousands of jobs in villages through Anveshan".

Bipin Shah, partner at Titan Capital said, "We are able to see Anveshan solving quality and trust issue in food products. Even customers can trace the origin of products like A2 ghee, Spices, Edible oil. Especially a big need in urban busy population who want to be relaxed about quality of raw material being used in kitchen to remain super healthy and immune in this new world"

Silicon Road Invites Applications for Acceleration Program Exclusively for Retail, Food-Tech Startups

Silicon Road, US-based early-stage venture capital firm has opened the call for applications for its Indian accelerator. The accelerator is designed to attract the best food tech and retail startups to participate in a 4-month acceleration program with access to the best mentors from the U.S., India and Israel. 

The 2nd Cohort of the accelerator program will include seed funding, access to eminent mentors in the food and retail space across the globe, infrastructure support and an ecosystem that will help the startup scale to the next level.  The Accelerator program leverages three primary hubs of innovation in the US, India and Israel to give the most revolutionary ideas in food and retail a global platform.  

As a runup to the 2nd cohort, Silicon Road recently organized a Global Food Technology Conference in Mysuru, called Silicon Road Innovation in Food Technology (SRIFT 2020). This event was a confluence of top Food MNCs from India, food tech research organizations, academia and startups. Several FoodTech startups and researchers came together to showcase their products and concepts. During the conference, Silicon Road also launched 4 new products to the market.

Silicon Road, the VC firm and Accelerator, was founded by Sid Mookerji, the founder and former CEO of Software Paradigms Infotech / Softvision (now acquired by Cognizant Technology Solutions) which was Mysuru’s first software 100% EOU. He also founded Silver Spirit Global LLC, which operates incubators and technology parks in the US and India.

Sid Mookerji, Founder & Managing Partner, Silicon Road said, “Silicon Road is an ecosystem that is designed to fast-track the growth of early-stage startups. We provide them with quick access to key industry experts, mentors, advisors, and funding opportunities through our acceleration program to improve their chances of success. The program helps startups strengthen their product and build their business strategy. 

Sanjay Srinivasmurthy, Co-founder & Director, Silicon Road, India added “With our Y2020 edition of the acceleration program, we aim to help startups & enterprises speed up their startup journey. The startups will undergo sessions on growth hacking, product design, branding & marketing, along with multiple bootcamps that will enable the startups to focus on the various core functions in the Food and Retail Technology. We hope to see more innovative Retail and FoodTech startup ideas in this edition.”

The first cohort of the accelerator had 7 startups - GetPY, IndiBean Coffee, Dhriti Bio Solutions, Ornativa Fashion, Q-Online, Meatup and Pickurflick. 

Interested startups can apply here: http://siliconroad.vc/in/accelerators/

About Silicon Road: Silicon Road is an early-stage venture fund and accelerator on a mission to create the world’s first innovation ecosystem for retail and food-tech companies in collaboration with scientists, startups, academia, and investors.

Agrifood Tech Accelerator Gastrotope Announces 5 Startups for its 1st Cohort

Gastrotope, the agrifood tech accelerator launched in September last year by Taizo Son’s Mistletoe, GSF, and Infobridge, today announced the names of five startups in the very first cohort of its program.

Over 150 applications were received for the program, and the following five startups have been shortlisted :

1. Brown Foods by Lifenectar Health Care Pvt. Ltd.

Founded in 2017 by Stanford, IIT Delhi and IIT Roorkee Alumni, Brown Foods is creating next-generation packaged food products. Using data analytics and AI, they make personalized packaged food products, using the healthiest ingredients sourced directly from farmers and deliver fresh at doorsteps, with complete transparency across the supply chain. 

2. Credible by Agzaken Risk Management (OPC) Pvt. Ltd.

Established in 2018, Credible has created agriculture specific risk management tools (AI-driven) for financial institutions and policy makers. It combines various data sources such as remote sensing, Agri-commodities pricing and transactions data to provide unique insights at a farm or farmer level. Its innovative approach was acknowledged and awarded the special jury prize at the Mumbai FinTech festival, and as one of the top25 InsureTech startups by HDFC Ergo.

3. Fasal by Wolkus Technology Solutions Pvt. Ltd.:

Established in January 2018, Fasal is an agri-tech platform, developed by Wolkus Technology Solutions. It is an AI-powered IoT platform for agriculture ecosystem that records a variety of growing conditions on the farms, makes on-farm predictions and delivers actionable insights and recommendations to farmers, thereby helping them in increasing productivity.

4. Occipital Technologies Pvt. Ltd.

Occipital Tech automates the grading and sorting process of fruits and vegetables by using computer vision. Occipital Tech's technology grades fruits and vegetables based on shape, size, color and surface patterns. The startup was established in the year 2017 with an aim to redefine the grading processes, to increase the transparency in trade and improve the marketability of the produce. 

5. Triton Foodworks Pvt. Ltd.

Founded in 2014, Triton Foodworks is a new age, precision farming company, which creates ideal conditions for growing pesticide free fruits and vegetables. Precise monitoring and adjustments of every input from light intensity to individual ions in nutrient mixes allows Triton to grow up to 15 times more produce in the same footprint, using almost 95% less water and absolutely zero chemical pesticides. Triton grows food that demands less and delivers more.



The Gastrotope accelerator program has helped these start-ups to optimise their business model, achieve product-market fit, and execute a scalable growth strategy. The program included 1 on 1 mentoring session with 30 mentors, provided networking opportunity, funding investment advice, strategy-and-skill development.

Gastrotope is a catalyst in the formation of ‘Farm to Fork’ ecosystem that is not only sustainable but also enriches the lives of billions.

Rajesh Sawhney, CEO and founder of GSF India said, “The five shortlisted startups embody our intent to create and nurture a true ‘Farm to Fork’ ecosystem in India. All of them share two common threads: an exceptional leadership team and a focused and scalable business idea, which we believe are vital ingredients necessary to make a meaningful impact in a sector as huge and diverse as agriculture.” Naho Shigeta, CEO of Infobridge Holdings said, “The overwhelming response to our accelerator program demonstrates the keen interest of Indian startup community in making a difference to agriculture in the country. The Gastrotope team is now looking forward to working with and enabling these five startups in building a strong and sustainable business."

What Does the Food Industry in India 2018 Look Like?

In the last few decades, your taste buds, your brain, your hormones, and your kitchen has been hijacked by the food industry in India. The Food and Agriculture Organization of the United Nations (FAOSTAT) analysed the consumption patterns of Indians over a period of 50 years, from 1961 to 2011, and found that the average daily calorie consumption in 1961 was 2,010. This grew to 2,458 in 2011.

This report is a clear indication that the food industry in India has changed the way people used to eat, spend, and think about food. The industry which was valued at USD 39.71 billion in 2017 is set for a huge growth and by the end of 2018, at a CAGR of 11%, will touch USD 65.4 billion.

Let’s find out how it has been doing and what are the factors that will lead the industry to reach the estimated figure.

Market Size in India

The Indian food industry, the food and grocery market, is the 6^th largest market in the world and it contributes to 70% of the total sales. Talking about the contribution within the country, the food processing industry has a share of 32% in the nation’s total market. In terms of production, consumption, and exports, it is ranked as the 5^th largest industry in India. The Indian gourmet food market is valued at USD 1.3 billion and is growing at CAGR of 20%.

The food industry in the last few years has seen a drastic transformation with the invention of the “Online Food Ordering” business. Still in the earlier stages, companies like FoodPanda, Zomato, Swiggy, and many such are ready to take the Indian online food ordering business to new heights. The online food delivery sector is growing at 150% year-on-year and the GMV (Gross Merchandise Value) is estimated at USD 300 million.

Investments from across the globe

The food industry in India has, in the last few years, seen a lot of foreign investment. The Department of Industrial Policies and Promotion (DIPP) states that India received around USD 7.54 billion FDI from April 2000 to March 2017. The CII has predicted that the food processing sector has the potential to attract around USD 33 billion FDI in the next ten years and also generate nine million person-days of employment.

To name a few giant investments in the industry:

1. Amazon, the global e-commerce giant, has plans to diversify its business by entering the Indian food retailing market and invest around USD 515 million in the next five years.


2. Parle Agro Pvt Ltd has kept its target to achieve an annual target of Rs. 5,000 crore by 2018, and to do so have launched new products like Frooti Fizz.


3. US-based Cargill Inc aims to grow its branded consumer business in India by two times by 2020.


4. Uber Technologies Inc has entered the food delivery service with its brand UberEATS.

Steps by Government

The Indian government has taken steps to boost the food industry by allowing the Indian food manufacturers to sell its products manufactured in India through wholesale and/or retail, including through e-commerce without the government’s prior approval. The Food Safety and Standards Authority of India (FSSAI) has plans to invest USD 72.3 million to strengthen the food testing infrastructure in India. It has plans to upgrade its existing 59 food testing laboratories and set up 62 new mobile testing labs. These are just a few steps by the Indian government which will boost the food industry in India by 2018 to reach the desired value of USD 65.4 billion.

Additional Factors

Cultivation

India is ranked at 15^th in the list of top 20 exporters of agricultural products, worldwide. The agricultural exports grew at CAGR of 16.45% and reached from USD 11.3 billion in FY 2010 to USD 38.21 billion in FY 2018.

The agricultural ministry has been allocated USD 8.9 billion in the Union Budget 2018-19. In FY 2018, it is expected that the Gross Value Added (GVA) by the agriculture, forestry, and fishing will grow to USD 274.23 billion.

[caption id="attachment_125478" align="aligncenter" width="372"] Image - IBEF.org[/caption]

Agri-logistics

The Indian warehousing market is growing at a CAGR of 9% and is estimated to touch USD 1.5 Billion. A significant part of it, around 85%, is being used for food grains. In addition to it, due to the Indian government’s emphasis on the “Make in India”, the domestic production has sped up and is creating opportunities for the logistics industry in the country.

Distribution

The Indian market has 68% rural population, which is being fed by a strong and deep distribution network by companies like Parle. Parle, the biscuits giant of India has one of the largest distribution networks which comprises of 4.5 million outlets across India.

Important Changing Trends in the Indian market

According to the above facts and figures, the food industry in India promises an encouraging 2018 and the following decisive changing trends in the Indian market confirms the same.

A. Customer’s changing consumption trends

A fast-paced lifestyle, hectic working environment, drastically changing work-life balance, and occurrence of lifestyle diseases like diabetes has changed the scenario of the “Consumer Health market”. Technology has enhanced consumer awareness and people are looking for healthier alternatives when it comes to food so as to include nutrition in their daily consumption. The estimated current worth of the Indian consumer health market is USD 4.8 billion and has numerous new categories like- dietary supplements, weight management, Probiotics, Sports energy, and many more.

Moreover, they prefer items which are convenient, on the go consumption packs like- sachets, ready to drink items, food delivered in disposables, and ready to eat items. They prefer staying “digitally active”, which means their digital presence has enhanced the “online grocery and packaged food shopping industry” as a result of increased options such as online food ordering formats and online payment gateways. The trend of staying "live and active" on social platforms, blogging, and discussion forums has also helped the food industry in India grow at a rapid pace.

Takeaway

With improving supply chain models, the Make in India initiative, organizing the food industry in India, and implementation of encouraging government policies like, SAMPADA (Scheme for Agro-Marine Processing and Development of Agro-Processing Clusters), and FSSAI regulations will certainly impact the Indian food industry in a positive way to strengthen it.

With Rs 50 Crore, Orkla Group Is All Set To Invest In Indian Foodtech Startups

The parent company of MTR Foods, Orkla Group has set up an venture fund Rs.50-crore with an aim to make early-stage investments in startups. The fund, named MTR Seed Fund, will invest mainly in food tech-related startups in India over 2017 and 2018. It is the first such fund set up by the Orkla Group outside of Scandinavia.

Commenting on the development, Peter A Ruzicka, president of Orkla Group, told ET, “We are mainly looking at early stage startups, these could be tech startups that fit with our current business or startups in sectors that focus on creating innovative food products, production tech, packaging technology or distribution."

Not only this, the firm is also open to acquiring a startup that might complement its current business in India or one that might have the potential to become a global product which can strengthen the company's position in any of the markets it is present in.

“We have a long-term approach, so we may invest in one to 20 startups.Depends on what we find attractive, we may acquire a startup or sell to a private equity fund as an exit strategy," added Ruzicka.

The company will invest and have a stake ranging between 26% and 49% in the startups. Startups that become part of the MTR Seed Fund will have access to MTR Foods research and discussion team, as well as to the company's in-house group of chefs if the product is food-based or common services such as branding, legal assistance, treasury, and accounting services, reports ET.

Before finalizing the investment, MTR senior management will review food tech and other startups.

In April, MTR Foods launched a three-minute breakfast category that targets millennials, enabling them to have a quick on-the-go Indian breakfast ranging from poha to upma, and oats.