The Betel Leaf, a Bengaluru-based online paan startup, has raised $1.2 million (around INR 10 crore) in a bridge funding round co-led by Inflection Point Ventures and Venture Catalysts.
The startup plans to utilize the new capital to amplify its existing retail and online footprint, scaling from 45 to 100 kitchens across India and overseas within the upcoming two years. Simultaneously, it aims to pioneer new automation technology to enhance consistency, ramp up production volume, and broaden its product range. Additionally, the fresh funds will fuel efforts to diversify its product portfolio.
Established in 2019 by Prem Rheja and Payal Raheja, The Betel Leaf operates as a direct-to-consumer (D2C) company specializing in the online sale of paan and other paan-derived products.
Its range includes Fresh Pans, ARID Pans, Celebration Hamper, Betel Chocolate, and Betel Leaf Tea. Within the Fresh Paan category alone, it boasts eight distinct flavors. Additionally, the company exports its products to Singapore, Malaysia, Nairobi, the UK, and the US.
Rheja expressed, “Our goal is to ensure that every consumer experiences the benefits of Betel Leaf through our range of paan and other paan-based products. We aspire to be pioneers and leaders in organizing this currently unstructured product category.”
“In today’s rapidly evolving India, sourcing authentic, hygienic, and convenient options for traditional Indian desserts like paan can prove to be quite a challenge. The Betel Leaf Co is tackling this issue directly by providing hygienic, fresh, and genuine paan, featuring a diverse range of flavors, delivered straight to our doorsteps,” stated Ivy Chin, a partner at Inflection Point Ventures.
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The Betel Leaf is additionally seeking to broaden its retail footprint through collaborations with retail chains such as Reliance Retail, Spar, and other major players.
In 2021, the company successfully raised $800K in a seed funding round, with Venture Catalysts and 100Unicorns (formerly known as 9Unicorns) leading the investment.
The startup boasts prominent investors, including 100Unicorns, along with individual backers such as Amit Mehta, the promoter of S Amit group of companies, Arjun Vaidya, a venture investor at Verlininvest, and angel investor Masoom Minawala.
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In 2023, India’s ecommerce market felt the impact of the broader funding downturn, witnessing a significant decline in startup funding compared to previous years.
Reports indicate that Indian ecommerce startups secured $2.6 billion in funding throughout the year, marking a 32% decrease from the $3.8 billion raised in 2022.
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