D2C instant food startup Yu Foods reported a sharp jump in revenue in FY25, underlining rising consumer appetite for convenient, ready-to-cook meals driven largely by digital and quick commerce platforms.
The Gurugram-based company more than doubled its operating revenue to ₹35.1 crore in FY25, up from ₹15.7 crore in the previous fiscal. Including other income of ₹1.3 crore, Yu Foods closed the year with a total income of ₹36.4 crore, according to financial disclosures.
Despite the strong top-line growth, losses widened during the year. Net loss increased 42.8 percent to ₹11 crore compared to ₹7.7 crore in FY24. The company attributed the rise primarily to a sharp reduction in deferred tax benefits, which fell to ₹89.6 lakh from ₹3.5 crore a year earlier. Management noted that without this adjustment, losses would have remained largely stable.
Operational efficiency showed signs of improvement. EBITDA loss narrowed to ₹8.5 crore from ₹9 crore in FY24, while EBITDA margins improved significantly to minus 24 percent from minus 60 percent. Total expenses rose 77.8 percent to ₹48 crore, reflecting investments in growth, product expansion and team building. Employee benefit expenses increased to ₹4.5 crore during the year.
Founded in 2021 by Bharat Bhalla and Varun Kapur, Yu Foods offers more than 25 instant food products spanning noodles, pastas, desserts and ready-to-cook meals. The brand’s growth continues to be led by online channels, with quick commerce and e-commerce accounting for nearly 65 percent of revenue. Offline sales contribute the rest, mainly through modern trade partners such as DMart and Reliance Supermart.
Looking ahead, the company has already surpassed its FY25 revenue within the first seven months of FY26. Management expects net revenue of ₹70 to ₹75 crore in FY26, supported by deeper penetration in existing markets and continued momentum across digital platforms.
Yu Foods has raised close to ₹100 crore to date, including a $6.5 million Series B round led by Ashish Kacholia and the Asian Paints promoter group.
